Ethereum (ETH) Price Plunges Below $2,000: Are We Heading to $1,070?

Table of Contents Ethereum (ETH) is experiencing significant downward pressure. Over the previous month, the digital asset has shed 12.6% of its value, positioning it as the poorest performer among the five largest cryptocurrencies by market capitalization. The selling momentum accelerated recently when ETH breached the $2,000 threshold — a level widely regarded by market participants as a crucial psychological benchmark. The asset reached an intraday bottom of $1,964 during the latest trading session before staging a modest recovery. Trading activity surged by 24% within a 24-hour window, climbing to $18 billion. This volume represents approximately 8% of Ethereum’s circulating market capitalization — a strong indicator that selling intensity is mounting rapidly. The downward movement has been compounded by substantial forced liquidations. Across the broader cryptocurrency market, long position liquidations totaled $861 million in one session alone. Ethereum accounted for roughly one-quarter of that amount. Just prior to that, $138 million worth of ETH long positions were forcibly closed — representing the second-largest single-day liquidation event over the past 90 days. Such aggressive liquidation activity typically indicates a “long squeeze” scenario, where declining prices automatically trigger sell orders, which subsequently drive prices down further. Market analyst Ali Charts highlighted the developing situation via social media: “If Ethereum $ETH prints a weekly close below $1,850, a downside acceleration becomes highly likely.” He identified two critical downside price targets — $1,560 as a medium-term support zone, and $1,070 representing the lower edge of the multi-year trading range. His technical assessment draws from the broader channel formation and the rejection observed at present price levels. If Ethereum $ETH prints a weekly close below $1,850, a downside acceleration becomes highly likely. From a purely technical perspective, the broader channel structure points to two major downside targets following this rejection: • First Target: Around $1,560 (interim… https://t.co/LNkygeXO5n pic.twitter.com/rOGsvEsahu — Ali Charts (@alicharts) May 29, 2026 Trader sentiment has deteriorated in tandem with price movements. The Fear and Greed Index currently stands at 32, a reading last observed in early February, placing the market squarely in “Fear” territory. Resistance zones on shorter timeframes are building up. A descending trend line has emerged with resistance positioned near $2,010. Beyond that barrier, additional resistance levels sit at $2,020 and $2,050. For those maintaining bullish positions, the critical support to defend is $1,965. A decisive breach below that threshold would likely expose $1,950, followed by $1,920, and potentially $1,850. From a macroeconomic perspective, recently released U.S. PCE inflation figures registered at 3.3% — matching forecasts but elevated enough to eliminate expectations for interest rate reductions this year. This development diminishes the likelihood of any near-term catalyst from accommodative monetary policy. One technical formation under scrutiny among analysts involves the weekly Relative Strength Index. During both 2019 and 2022, each instance where the RSI fell to 30 or lower coincided with the bottom of a bearish cycle. In both historical cases, price action retested the cycle low before initiating a recovery. The RSI currently hovers near that identical threshold, suggesting a potential retest of the $1,750 cycle low remains a realistic scenario. ETH is presently trading around $2,000, with the descending trend line restricting upward momentum at $2,010.