Ethereum Drops Toward $2,000 as Smart Money Pulls Back

Ethereum (ETH) is under pressure once again, sliding toward the $2,000 level as investor sentiment weakens.

Written by: Sophia Cruz • Monday, June 23, 2025 • 2 min read

• Last updated: Monday, June 23, 2025

Quick overview

Ethereum (ETH) is experiencing downward pressure, nearing the $2,000 mark as investor sentiment declines.
Large withdrawals from institutional wallets and geopolitical tensions are contributing to the market's volatility.
Short positions have surged among leveraged traders, indicating a growing bearish sentiment towards Ethereum.
Despite the current challenges, some analysts believe Ethereum's long-term fundamentals remain strong.

Ethereum (ETH) is under pressure once again, sliding toward the $2,000 level as investor sentiment weakens.

This recent downturn is being fueled by large-scale withdrawals from smart money wallets and increased geopolitical tension in the Middle East. As volatility spikes, market watchers are closely monitoring whether Ethereum can hold key support or if further losses are on the horizon.

In the past few days, several wallets associated with institutional-level investors have exited significant Ethereum positions. Analysts refer to this as smart money behavior, suggesting that well-informed traders may be anticipating additional downside. The shift comes after news broke of a U.S. airstrike on Iran, which immediately impacted both traditional and crypto markets.

Adding to the pressure, leveraged traders have started piling into short positions. More than $100 million in leveraged Ethereum bets have been placed, mostly anticipating further price declines. This move by whales is a signal that bearish sentiment is picking up quickly, with risk-averse investors moving funds out of ETH and into stable assets or cash positions.

Still, not all outlooks are negative. Some analysts point out that Ethereum’s fundamentals remain strong in the long term. Network activity, DeFi usage, and staking continue to show positive trends. However, in the short term, the focus is on technical levels and market reactions to ongoing geopolitical uncertainty.

The $2,000 support level is now critical. If Ethereum breaks below this point, it could trigger more selling as stop-loss orders get activated and sentiment weakens further. On the other hand, if buyers step in to defend this level, a rebound could take shape in the coming sessions.

Overall, Ethereum’s recent decline reflects larger market fear. Global events are having a greater impact on cryptocurrency markets than ever before, and traders are responding rapidly to any signs of volatility. While many see Ethereum’s long-term prospects as favorable, the current situation requires prudence, since price action remains vulnerable to global trends and investor psychology.

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ABOUT THE AUTHOR See More

Sophia Cruz

Financial Writer - Asian & European Desks

Sophia is an experienced writer, reporter and newsdesk member, mostly on the financial sectors. For the past 5 years Sophia has covered a wide variety of topics such as the financial markets, economics, technology, fin-tech and trading. Sophia has been a part of the FX Leaders team since 2017 and works on producing valuable content and information for traders of all levels of experience.