Ethereum Crashes Below $2,000 as Bitcoin Breaks $70K Support, June 02

Ethereum fell 7.7% to $1,848.18 on June 02, breaching the critical $2,000 support level for the first time in weeks. Bitcoin’s collapse below $70,000 triggered the selloff, driven by record ETF outflows and MicroStrategy’s first Bitcoin liquidation since 2022. The crypto market is now testing deeper support levels as institutional demand weakens.

Bitcoin’s Fall Drags Ethereum Lower

Bitcoin dropped below $70,000 on June 02, hitting its lowest level in nearly two months. Ethereum, which trades closely with Bitcoin, fell to an intraday low of $1,963 as the selloff accelerated during early European trading hours. Automated stop-losses and derivative liquidations on exchanges like Bitstamp and Binance amplified the downward momentum.

ETF Outflows and Strategy’s Bitcoin Sale Spark Fear

US spot Bitcoin ETFs posted an 11-day streak of net capital outflows, with investors withdrawing nearly $3.5 billion amid geopolitical tensions between the US and Iran. MicroStrategy sold $2.5 million worth of Bitcoin to fund preferred shareholder dividends, marking its first liquidation since late 2022. The move broke the company’s strict hold strategy and rattled market participants.

Institutional Demand Weakens Across US Exchanges

The Coinbase Premium Index for Ethereum hit -0.16, its lowest level since February, signaling reduced buying activity from US-based participants. A negative reading means Ethereum trades cheaper on Coinbase than on Binance, reflecting weak domestic institutional demand. The index has remained negative throughout 2026, indicating a structural shift in US investor appetite for crypto.

Technical Breakdown Points to $1,800 Support

Ethereum is trading below its 100-hourly moving average with a bearish trend line forming at $2,010 resistance. The RSI sits at 26.78, indicating oversold conditions, while the Stochastic Oscillator reads 10.03. Meyka rates Ethereum a C+ with a 12-month price target of $2,894.13, suggesting limited near-term upside. Support levels sit at $1,955 and $1,800 if selling continues.

Final Thoughts

Ethereum’s break below $2,000 reflects broader crypto weakness tied to Bitcoin’s technical failure and institutional capital flight. With Meyka’s C+ rating and $2,894 annual target, the data shows significant recovery potential but near-term downside risk remains elevated.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.