Multi-billion dollar option expirations, institutional selling, and a hawkish outlook from the Federal Reserve are pushing Ethereum back towards key support at $1,500, extending Ethereum’s weekly decline.
According to data from crypto.news, Ethereum ($ETH) fell approximately 7% to an intraday low of $1,517 on June 26th, after which it stabilized at around $1,550 at the time of writing. The asset has fallen nearly 14.4% from its June 22 high of $1,773.
The decline accelerated after Ethereum lost its 200-day moving average around $1,668, triggering a wave of leveraged long liquidations.
Meanwhile, the U.S. Spot Ethereum ETF posted net outflows of about $260 million this week, up sharply from the previous week as institutional investors reduced exposure ahead of the Federal Reserve’s expected third interest rate hike this year.
Further pressure came after the Ethereum Foundation announced a 20% reduction in its workforce and a 40% reduction in its operating budget. Traders are already facing increased volatility over $11 billion in option expirations, but the restructuring raises new questions about the network’s pace of development and funding prospects.
Ethereum’s $1,500 support has become the market’s main test
Ethereum’s daily chart shows that the token has fallen below the $1,805 support area and the former demand zone has turned into overhead resistance. The next major support lies near $1,414, but current attempts at a bounce remain limited as buyers defended the $1,500-$1,520 area.
On the 4-hour chart, Ethereum has been in a descending channel since its June 15 high near $1,849. The Fib retracement map shows immediate resistance near $1,584, followed by $1,641, $1,681, and $1,720. A stronger recovery would require a clean move above $1,750, which also coincides with an important level that traders are watching.
According to analyst Ted Pillows, Ethereum’s momentum remains weak after retesting the lows.
“$ETH The price hit another low. Momentum remains weak due to market correction. However, if Ethereum manages to regain the $1,750 level from here, we could see a rescue rebound next month. ”
Momentum indicators remain weak. With the 4-hour RSI near 35, Ethereum is close to oversold territory without confirming a strong reversal. Although the MACD is still below the zero line, its histogram has started to flatten, indicating that the bearish pressure is slowing after the sharp decline.
The daily Aroon setting still favors sellers. Aroon down is 100%, while Aroon up is closer to 21%, indicating that while Ethereum has hit new lows recently, upward momentum remains limited. The daily MACD also remains negative, with both signal lines well below zero.
Clearing clusters keep pressure on both sides of the trade
CoinGlass’ three-day liquidation heatmap shows significant leverage around $1,590 to $1,610, with a larger cluster occurring around $1,660. If Ethereum rebounds through these zones, short-term liquidations could accelerate the move towards $1,700 or even $1,750.
Below the spot price, the heatmap shows liquidation interest around the $1,520 and $1,500 levels. A break below this area exposes the $1,464 to $1,414 area and the daily chart shows the next major support band.
The position of the whale is also weakening. CryptoQuant analyst Darkfost noted that three large Ethereum holder groups are currently underwater, with an unrealized gain ratio of -0.26 for 1,000 to 10,000 shares. $ETH Holder, -0.21 for 10,000 to 100,000 $ETH holder, and -0.05 if you hold more than 100,000 wallets. $ETH.
According to Dirkforst, this situation has not appeared since 2019, as even the biggest Ethereum whales maintained profits during the 2022 bear market. The analyst added that Ethereum remains “quite resilient” despite the pressure, as similar periods of whale stress have historically appeared near major bottom zones.
📉 $ETH The whale is underwater.
Nothing like this has happened since 2019. Even in 2022, the largest whales still have more than 100,000 individuals. $ETHmaintained profits.
💥 All three whale categories shown here today are lost. In both cases, the unrealized profit rate is negative… pic.twitter.com/p7Mdnta2p9
— Darkfost (@Darkfost_Coc) June 26, 2026
Downside risk remains high if Ethereum loses the $1,500 volume area. A close of the day below that level would weaken the double bottom setup and increase the risk of a further move towards $1,414. If institutional demand does not recover, a more hawkish Fed, a stronger dollar, higher Treasury yields and continued ETF outflows will add to the pressure.
The bullish nullification level is now clear. Ethereum needs to recover $1,750 and then $1,805 to prove that the recent decline was a liquidity flush rather than the beginning of another collapse. Until then, the market remains caught between forced selling below $1,600 and short covering risk above $1,660.
