Ethereum drops 4% to $1,630 as key support level wobbles under pressure

Ethereum fell 4% to $1,630 in the 24 hours to 14:00 UTC on June 9, extending its decline from above $3,000 to nearly 45% and bringing the token to a critical support zone that has held since the 2022 market bottom. The move coincided with a broader crypto selloff that pushed Bitcoin down 4.7% to $61,050 and erased about $468 million in leveraged positions across derivatives exchanges, according to Coinglass data.

"The $1,700 level was a major bottom in February 2026 and is now acting as resistance," Ted Pillows, an independent technical analyst, said. "If Ethereum fails to reclaim this, a sweep of lows toward $1,540 could happen next."

Total liquidations reached $468 million over the past day, with roughly $331 million in long positions wiped out, Coinglass data shows. Open interest across Ethereum futures has fallen from about $35 billion to $24 billion, signaling a significant reduction in leveraged exposure. Meanwhile, spot Ethereum ETFs recorded $82.37 million in net inflows on June 9, according to SoSoValue, partially offsetting the bearish tone from $91.37 million in outflows from Bitcoin ETFs.

The $1,630 area represents a multi-year support trendline that has guided Ethereum's recovery since 2022. A break below this zone would expose the $1,540 to $1,530 region, where the token previously found buyers during major pullbacks in 2023 and 2025. On the weekly chart, the MACD remains in bearish territory and the Chaikin Money Flow indicator sits at negative 0.22, signaling continued capital outflows. However, the liquidation map shows a concentration of short liquidity between $1,750 and $1,900, suggesting that a reclaim of $1,700 could trigger a short squeeze and accelerate buying pressure toward those levels.

What the Liquidation Data Shows

The imbalance in market positioning is visible in the derivatives data. The largest short liquidation clusters sit at $1,750, $1,800, and $1,900, according to Coinglass liquidation heatmaps. With about $1.84 billion in short positions still vulnerable to a sudden reversal, a decisive move above $1,700 could force traders to cover, adding momentum to any rally. Conversely, a breakdown below $1,630 would shift focus to the $1,400 support zone, a level not tested since the 2022 bear market.

The Glamsterdam network upgrade, scheduled for the third quarter of 2026, could provide a structural catalyst for a longer-term recovery. The upgrade will increase Ethereum's block gas limit by 3.3 times, boosting throughput to an estimated 10,000 transactions per second. Standard Chartered maintains a cyclical forecast targeting $7,500, while Fundstrat models a rally toward $12,000 once macroeconomic liquidity returns to the digital asset sector, according to institutional research reports.

This article is for informational purposes only and does not constitute investment advice.