Ethereum Price Drops on Rising U.S. Treasury Yields
Ethereum (ETH) price dropped 0.40% to $2,677.62 on Friday, closely tracking a modest decline in Bitcoin, primarily driven by a broader macro-driven market sell-off.
Broader market pressure from rising Treasury yields and strong economic data, which reduced risk appetite across crypto, dragged the altcoin over the last 24 hours.
The primary driver of ETH’s price slowdown was a market-wide pullback, with Bitcoin down 0.34%. This was triggered by a spike in U.S. Treasury yields—the 10-year yield hit 5.11%—and stronger-than-expected S&P Global PMI data.
Crypto analysts said higher yields increase the opportunity cost of holding non-yielding assets like crypto, leading to a risk-off shift.
Ethereum’s move was not coin-specific but part of a macro-driven correction, showing its high correlation with traditional financial markets.
A secondary amplifier was a cascade of liquidations in the derivatives market. Over 24 hours, ETH spot liquidations totalled $504.62 million, with longs accounting for $359.45 million. This forced selling added downward pressure.
The market was over-leveraged on the long side, and the macro dip triggered a painful squeeze, exacerbating the price decline.
Traders said that a shifts in open interest and funding rates would gauge whether leverage is rebuilding or if the market is deleveraging further.
The immediate structure hinges on the $2,626 support level (recent swing low). Holding above it could see a retest of key resistance at $2,786.
A decisive break below $2,626 opens the risk of a deeper pullback toward the 20-day EMA near $2,550. The near-term bias is neutral-to-cautious, with price action dependent on holding key technical levels amid macro uncertainty.
A daily close above $2,786 would signal a resumption of the prior uptrend, or a break below $2,626 to confirm bearish momentum.
The 24-hour dip reflects a cooling-off period after recent gains, driven by macro headwinds and a leveraged washout rather than a fundamental shift in Ethereum’s outlook. Ethereum Slides as Traders React to Houthi Strikes on Riyadh
