From 06:15 to 06:30 (UTC) on June 5, 2026, ETH plunged by 1.61% within 15 minutes. The price fell from 1676.99 USDT to 1624.79 USDT, with a range of 3.12%. Previously, ETH had been in a downtrend for three straight weeks, with a cumulative drop of over 20%. The market had built up a large number of trapped long positions, and vulnerability increased significantly.
The main driving force behind this abnormal move was a cascade effect: concentrated sell pressure released on top of the downtrend, combined with forced liquidations of leveraged positions. Futures market data shows that within 24 hours, the long liquidation amount was $50.63M, while shorts were only $10.96M. The long-to-short liquidation ratio skewed to 4.6:1, indicating that long positions were in a highly fragile state. When the price moved near the $1,800 key support level, any additional selling pressure would trigger forced liquidation of leveraged longs, creating a vicious cycle of “price drop → liquidation → further drop.”
In addition, continuous net outflows from spot ETFs further worsened the lack of follow-through. Data shows that over the past seven days, ETH spot ETFs saw net outflows of $216M, and on May 28 alone, outflows reached $121.4M, led by a certain institution. Ongoing fund outflows mean spot market buy-side demand is exhausted and cannot effectively absorb sell pressure. At the same time, on June 2, Bitcoin broke below the $70,000 key support level, triggering a correlated effect: risk assets overall came under pressure, forcing leveraged traders to reduce their ETH positions. On-chain data shows that large whales net-bought 1.02 million ETH in May, but long-term accumulation has a lag versus short-term price action, so it cannot reverse sell pressure within a 15-minute window.
On short-term risk, the $1,800 key support level faces a test. A breakdown could open downside room toward $1,780. Investors should monitor changes in the futures market long-to-short liquidation ratio, spot ETF fund flows, and whether Bitcoin stabilizes. Historically in June, ETH has tended to perform weakly; over the past 10 years, it recorded negative returns in seven years, indicating higher volatility risk. It is recommended to watch key technical support levels and on-chain fund movement.
