Ethereum Price Drops Below $2,000 Amid Market Uncertainty

Ethereum (ETH) experienced a significant downturn, falling below $2,000 for the first time since December 2023, as reported last week. This decline reflects broader market hesitancy fueled by political unrest and uncertainty in the US. Data from The Block indicates nearly $120 million in net outflows from Ethereum spot ETFs, exacerbating the price correction. Over the weekend, $230 million in ETH long positions were liquidated, further driving down the price. However, crypto analyst Ali Martinez noted that over 600,000 ETH tokens were withdrawn from exchanges last week, potentially signaling accumulation by large investors. Despite the current downturn, long-term factors such as increased DeFi app usage and a $1.3 billion increase in stablecoins on the Ethereum network last week, according to LookOnChain, suggest potential future growth. Furthermore, the increasing adoption of Web3 and crypto wallets like MetaMask and Trust Wallet indicates growing interest in the crypto space.