From 16:15 to 16:30 (UTC) on June 3, 2026, ETH saw a sharp drop of 0.96% within 15 minutes. Its price fell from 1,838.73 USDT to 1,811.4 USDT, with a swing of 1.49%, and the market showed clearly intensified volatility. This sell-off occurred against the backdrop of BTC breaking below the $70,000 threshold and a wave of liquidations across the entire market, with panic sentiment rapidly spreading to the ETH market.
The main drivers behind this abnormal move come from two aspects: first, the correlation effect triggered by a sharp decline in Bitcoin. On June 3, BTC opened lower and broke below $67,000; this was the first time in nearly two months that it failed to hold the crucial $70,000 level. In the span of 24 hours, nearly $1 billion worth of crypto was liquidated, and as the second-largest crypto asset by market cap, ETH could not stay out of the sell pressure. Second, the cumulative effect of ongoing net outflows from ETH ETFs. It is said that ETH ETFs have recorded net outflows for 15 consecutive trading days. In May, the total outflow was about $400 million. Institutional buy orders pulled away, causing the market to lose an important support.
Meanwhile, the convergence of technical factors further amplified the downward move. After ETH broke below the $2,000 psychological level in early June, it failed to produce an effective rebound. The RSI indicator has fallen to 20.34, significantly below the oversold threshold of 40, putting the market in an extremely oversold state. In addition, U.S. ISM manufacturing PMI data has been staying above 80, strengthening cautious expectations for Fed rate cuts. The persistently high-interest-rate environment continues to suppress demand for risk assets, and geopolitical risks have also heightened the market’s risk aversion.
Risks of volatility in the current market still remain. Technical indicators suggest that extreme oversold conditions could trigger a short-term rebound, but if there is no clear positive catalyst to support it, the upside room may be limited. Key things to watch include whether BTC can stabilize above $70,000, whether the capital flows of ETH ETFs turn around, and whether the $2,000 level can be reclaimed.
