Ethereum Breaks Below $2,400 Support as Spot ETF Flows Turn Negative

Key Facts

Amid intensifying selling pressure on digital assets, Ethereum has officially broken below the pivotal $2,400 support level, placing the world's second-largest cryptocurrency under a new price test. According to reports, this decline followed the failure of the CLARITY Act to advance in the US Senate, compounded by persistent concerns regarding Federal Reserve Chair Kevin Warsh's monetary policy trajectory and its impact on market risk appetite.

In a reversal of previous trends, US spot Ethereum ETFs have seen flows turn negative, adding significant weight to the downward spot price momentum. While prior data indicated exchange reserves dropped by 159,000 ETH due to heavy withdrawals, the breach of the $2,400 mark suggests that selling pressure has overwhelmed the accumulation efforts previously seen by large 'whale' wallets.

As of September 16, 2026, traders are monitoring whether the price can reclaim its previous levels or if it will seek a new floor after losing key support. Market participants remain focused on upcoming economic data and Federal Reserve commentary, as sentiment stays cautious pending any regulatory signals that might offset the current downturn amid tightening supply on centralized exchanges.