Ethereum Drops Below $2,000 on Crypto Market Selloff, June 02

Ethereum fell to $1,975.63 on June 02, down 1.2% in 24 hours, as Bitcoin’s slide below $70,000 pulled the broader crypto market lower. Strategy’s first disclosed bitcoin sale in five years and geopolitical tensions over U.S.-Iran ceasefire talks weighed on investor sentiment. The decline marks a pullback from May’s strength, with ETH spot ETF outflows adding pressure.

Bitcoin’s Decline Triggers Broader Selloff

Bitcoin dropped 3.8% in 24 hours to trade just above $70,000, hitting lows of $69,648. Strategy, the largest corporate bitcoin holder, disclosed its first publicized sale of 32 coins for $2.5 million at an average price of $77,135. The sale, earmarked for preferred stock distributions, signaled a shift in the company’s five-year accumulation strategy and dampened market confidence.

Ether tracked Bitcoin lower, hovering just below $2,000. Other major tokens also fell: XRP dropped 2.75% to $1.26, and Solana slipped 1.17% to $79.66. Dogecoin remained flat at $0.10.

ETF Outflows and Technical Weakness

Ethereum faced headwinds from $401.62 million in ETH spot ETF outflows during May, breaking a streak of inflows. Meyka’s technical indicators show oversold conditions with RSI at 32.54 and CCI at -120.28, signaling extreme selling pressure. The 50-day moving average sits at $2,241.63, well above the current price, indicating a significant downtrend.

Meyka rates ETH a C+ with a 12-month price target of $2,894.13, suggesting 46% upside from current levels. However, the near-term technical setup remains bearish with the stock trading below its 200-day average of $2,497.44.

Geopolitical Tensions Weigh on Risk Assets

Iran’s halt to U.S. talks and threats to block the Strait of Hormuz rattled global markets. Oil prices held near $94.40 per barrel as energy costs remained elevated. Stocks eased from record highs as investors locked in gains on the AI rally, with Nasdaq 100 futures slipping 0.7%.

Crypto markets tracked broader risk-off sentiment. Hyperliquid’s HYPE token stood out, gaining 24.3% over seven days to $73.76 despite the broader selloff, as its RWA open interest reached $3 billion.

Analyst Forecasts Point to Recovery Potential

Analysts expect ETH to consolidate above $3,000 by year-end, with some forecasts reaching $4,500 to $4,900 for 2026. Longer-term projections for 2027 target $5,614 to $7,063. BitMine slowed accumulation as prices fell, suggesting institutional caution. Despite near-term weakness, analysts remain focused on support levels and potential recovery catalysts.

Final Thoughts

Ethereum’s drop below $2,000 reflects broader crypto weakness tied to Bitcoin’s decline and geopolitical headwinds. With Meyka’s 12-month target at $2,894, the current price offers a risk-reward setup favoring patient investors, though near-term technicals remain weak.

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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.