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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
Amid a broader downturn in the digital asset market, Ethereum is facing intense selling pressure that has dropped its price by 4.20% within 24 hours, trading near the $1,762 level. Derivatives market data indicates mounting pressure on leveraged long positions, with recent volatility triggering $1.2 billion in total liquidations. The market has entered a capitulation phase where short-term holders are moving assets to exchanges at a loss, with analysts identifying $1,500 as a critical downside target.
This decline comes as major digital assets face similar headwinds, with Bitcoin recording parallel retreats that have dampened investor sentiment across the sector. Per market data, the $1.2 billion liquidation event reflects broader economic uncertainty that has pushed investors away from high-risk assets. Compared to the previous quarter, cryptocurrency inflows to exchanges have surged, a technical indicator that reinforces expectations of continued bearish momentum in the near term.
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Sign InLooking at current technical levels, Ethereum stood at $1,762 (at close June 4, 2026), and traders are watching for a breach of the $1,700 psychological support which could accelerate the move toward the $1,500 target. On the economic calendar, investors should monitor upcoming speeches from Federal Reserve officials, including Kashkari and Schmid on May 29, 2026, as US monetary policy commentary directly impacts risk appetite in the crypto market.