- Ethereum breaks structure, triggering over $250 million in long liquidations as smart money exits.
- With on-chain metrics flashing warnings, is $2,000 the next to fall?
After more than a month of sideways chop, with Ethereum [ETH] compressing between the $2,350 support and $2,900 resistance, the price finally broke the structure.
On the 21st of June, ETH sliced through its range lows with a sharp 4.56% breakdown. It tagged $2,215, the lowest print in nearly 50 days. Unsurprisingly, over $250 million in long positions were liquidated as overleveraged bulls got caught in a classic rug-pull.
At first glance, this could pass as a typical leverage reset. But the on-chain data says otherwise. According to AMBCrypto, a structural shift may be underway – One that could leave Ethereum’s $2,000 support increasingly exposed.
Global tensions rattle markets, Ethereum leads the bleed
In under 72 hours, the crypto market erased nearly 3.5% of its total valuation. It was a clear sign that macro FUD was already baked in.
However, the real trigger came when the U.S. formally entered the Middle East conflict, snapping market structure across the board.
The reaction was immediate. Risk-off sentiment surged, and capital fled. But Ethereum bore the brunt of it, shedding 9.16% in the same window and breaking down to $2,215. And this wasn’t just another leverage flush.
Ethereum’s Coin Years Destroyed (CYD) spiked to a six-month high. This surge indicates that older, long-dormant coins suddenly came to life.
Sure, a surge in CYD doesn’t always confirm exit liquidity.
Source: Glassnode
However, this time the chain tells a clearer story.
According to Lookonchain, an OG wallet unloaded 5,000 ETH near the $2,400 mark, right before the breakdown. Another mid-sized whale started offloading as ETH sliced through key support.
No wonder Ethereum took the biggest hit, as these moves felt calculated. In other words, the timing suggests strategic exits, either to secure profit margins ahead of further downside or to break even on underwater positions.
More importantly, it signals a psychological inflection point. LTHs, typically the market’s backbone, are showing signs of fading conviction. And when smart money steps back, retail FOMO doesn’t stand a chance.
Can $2,000 hold the line?
From a structural standpoint, Ethereum would require a near 12% retracement from its press time price of $2,272 to revisit the psychologically critical $2,000 support level.
But given ETH’s sharp drawdown, that scenario is no longer far-fetched.
Q2 is shaping up to close on a volatile note. Escalating geopolitical tensions have flipped sentiment hard into risk-off mode. Until an official ceasefire is declared, the market remains exposed to fresh waves of macro-driven FUD.
Positioning data already reflects bearish pressure. A sizable $58.69 million long liquidity cluster has formed around $2,239, suggesting traders are aggressively leaning short.
Source: Coinglass
If conviction stays this low, it may only be a matter of time before another liquidity sweep sends Ethereum cascading below $2,200, setting the stage for a potential retest of the $2,000 zone.
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