Ethereum (ETH) is nearing its February low around $1,700 after a broader crypto sell-off pushed prices briefly below $1,900.
While some traders worry about the potential for further declines, several analysts emphasize that rising institutional interest in Ethereum’s infrastructure is a more significant development than the current price weakness.
Ethereum Approaching Key Support as Market Sentiment Weakens
Crypto trader Bren says ETH is making “an impulsive run” toward its February low of $1,700 following corrective price action through March and April. In a June 3 post on X, he argued that prevailing bullish expectations did not align with Ethereum’s chart behavior and therefore anticipated another drop.
He outlined two scenarios: one where ETH forms a double bottom at roughly $1,700 before bouncing, and another where prices fall below that level. He did not make a definite prediction, noting that either outcome would not change his long-term bullish view on ETH.
Bren pointed to institutional adoption—particularly of stablecoins and tokenized real-world assets—combined with widespread speculative interest and collecting behavior, as reasons to remain optimistic about Ethereum through the end of the year.
Electric Capital partner Avichal Garg expressed a similar view, saying Ethereum has a form of “credible neutrality” that is difficult to replicate. With nations such as China, India, and Brazil searching for financial infrastructure not controlled by a single country, a neutral settlement layer carries genuine geopolitical value.
“You talk to anybody on Wall Street,” he said, “everybody’s trying to build on ETH.”
Institutional activity appears to back up these perspectives. Lookonchain reported that Bitmine, chaired by Fundstrat’s Tom Lee, received an additional 25,000 ETH from BitGo—worth roughly $48 million—even as prices were declining.
Supply Trends and Institutional Adoption Support the Longer-Term Case
ETH’s recent price action reflects a decline of about 9.5% over the past week, and liquidations on June 3 were significant: CoinGlass data showed more than $439 million in long positions were wiped out in 24 hours. Still, market structure suggests a more nuanced picture beyond short-term moves.
CryptoQuant contributor CryptoOnchain highlights that over 32% of Ethereum’s circulating supply—around 39.5 million ETH—is now staked. At the same time, exchange balances have been decreasing, which reduces the amount of ETH readily available for trading.
Arab Chain noted that ETH funding rates on Binance climbed to their highest level since early 2026, indicating a sharp rise in leveraged long positions. This trend can be interpreted in two ways: traders may be positioning for a rebound, or the market could be crowded and vulnerable if prices continue lower.
In sum, short-term volatility and liquidations have pressured ETH’s price, but longer-term supply dynamics and growing institutional engagement in Ethereum’s ecosystem provide arguments for sustained interest in the asset. Traders should weigh immediate risks around key support levels against the broader trend of institutional adoption and reduced on-exchange supply.