ETHUSD – Ethereum Price Falls by 8% as Fear Fuels Selloffs
Ethereum (ETHUSD) price fell 8.05% over the last 24 hours to $1,638.21, underperforming the broader market decline and was primarily driven by a sector-wide altcoin sell-off.
The price depreciation was driven by shifting sentiment, altcoin weakness, and a drop in dominance, as capital rotates away from risk assets amid extreme fear.
However, a slew of crypto analysts maintained that the ETH outlook remains positive, as sell pressure was not coin-specific but a symptom of a tight crypto market structure.
Trading data showed that Ethereum’s drop outpaced Bitcoin’s, with its market dominance falling from 9.77% to 9.34% in 24 hours. ETH is acting as a higher-beta asset in a fearful market, suffering deeper losses as capital seeks safety.
The altcoin faces selling pressures as perpetuals open interest fell 6.79% and the average funding rate dropped 57.22% in 24 hours. This indicates traders are closing leveraged long positions, adding sell-side pressure without a violent liquidation cascade.
No specific Ethereum catalyst is visible; the path hinges on broader market sentiment and Bitcoin’s direction. The $1,600 level is immediate psychological support.
A green signal has shone in the crypto market. U.S. spot Ethereum exchange-traded funds recorded a net inflow of $18.87 million on June 4, ending a 17-day streak of net outflows.
BlackRock’s iShares Ethereum Trust (ETHA) led with a $19.26 million inflow, while its staking product saw a minor outflow. This reversal comes after one of the longest withdrawal periods for these products, attributed to market uncertainty and profit-taking.
This is a cautiously positive signal for Ethereum, suggesting that some institutional investors may view current lower prices as an attractive entry point for direct exposure.
However, a single day of inflows does not confirm a sustained trend; consecutive positive flows are needed to validate a shift in sentiment. BTC, ETH, XRP Decline Sharply on $1bn Crypto Liquidation
