Ethereum has retreated by 2.04% over the last 24 hours to trade at $1,837.54, underperforming a broader cryptocurrency market that is currently grappling with a risk-off macro environment and specific selling pressure from project leadership. The primary driver behind this downturn is a widespread market sell-off initiated after Bitcoin broke below the $65,000 threshold. This decline was fueled by renewed uncertainty surrounding U.S. tariffs and geopolitical tensions, which triggered cascading liquidations across the sector. Compounding these macro issues are secondary factors specific to Ethereum, including accelerated sales by co-founder Vitalik Buterin and sustained institutional outflows from spot Ethereum ETFs.
The broader market weakness stems significantly from macroeconomic developments, particularly following the U.S. Supreme Court’s ruling against former President Trump’s tariffs on February 23, 2026, which reignited fears regarding trade policy. This uncertainty prompted a shift away from risk assets, leading to a liquidation cascade where nearly $108 million in ETH long positions were wiped out within a single day. Consequently, Ethereum’s move was less reflective of its specific fundamentals and more a reaction to the general risk-off shift affecting crypto assets. Investors are now watching Bitcoin’s ability to reclaim $66,000, as a recovery there would likely ease the immediate pressure on Ethereum.
Specific selling pressure has also intensified due to actions by key insiders and institutional investors. Ethereum co-founder Vitalik Buterin accelerated his disposal of holdings in February, offloading over 8,800 ETH worth approximately $18 million, which added direct supply pressure to the market. Concurrently, spot Ethereum ETFs experienced a fifth consecutive week of outflows, totaling $36 million in the latest week alone. These flows signal waning institutional demand and represent tangible selling pressure from both a key insider and large, regulated investors, further dampening sentiment.
From a technical perspective, the near-term outlook remains cautious as ETH is currently oversold with an RSI14 at 30.4 and trades below all major moving averages, indicating entrenched bearish momentum. The immediate support zone lies between $1,750 and $1,800, with resistance established at the recent breakdown level of $1,920. If Ethereum holds above the $1,750 support, a relief bounce toward $1,920 is possible, but a break below risks a test of $1,500. The path of least resistance remains down until buying volume returns to absorb the ongoing supply, and traders should watch for a daily close above $1,920 to signal short-term bearish exhaustion.
In conclusion, the current market outlook for Ethereum is defined by bearish pressure resulting from a hostile macro climate, targeted insider selling, and fleeing institutional capital. The key factors to monitor moving forward include whether Bitcoin can stabilize above $64,000 and if Ethereum ETF daily flows turn positive, as these developments could provide a necessary floor for prices. Stabilization in Bitcoin and a reversal in ETF flows remain critical for any potential recovery in the near term.
Source:: Risk-Off Sentiment Drives ETH Below $1,850 as ETF Outflows Continue