Ethereum price plummets to $1,682 with a 5% drop! What could trigger the next move?

The price of Ethereum, the largest altcoin, has slipped to around $1,682, losing nearly 5% in value during the day. This latest decline pushed ETH below its key ascending trend line, signaling a break in upward momentum. According to analysts, the next major zone to watch is the $1,500 support region as traders brace for increased market volatility.

Support and resistance become central in technical analysis

On the daily chart, Ethereum is exhibiting signs of a volatility squeeze following the steep correction in June. Similar patterns have historically preceded decisive moves, reinforcing the focus on technical levels as investors seek short-term direction.

Prominent crypto analyst Ali Charts highlighted on X that Ethereum has dropped below its channel pattern as well as the 200-hour simple moving average. In his view, the digital asset could see a move down towards $1,580 in the near term.

Ethereum gave up two crucial support zones in recent weeks. The ascending trend line and the $2,150 threshold could not be conquered in mid-May, resulting in a downside break. The next major floor at $1,920 was also lost, leaving buyers to re-emerge only near the $1,500 band.

From this low, ETH briefly rebounded to test the lower boundary of its descending channel near $1,750. However, what was once strong support has now turned into formidable resistance. In this current range, $1,500 stands out as the main support, while $1,920 has become the key resistance.

Options and ETF data signal continued caution

Open interest in Ethereum options across major exchanges has slipped to $5.5 billion, notably down from the $8.5 billion peaks reached in January and March. At the same time, funding rates for perpetual futures are hovering near zero, reflecting a lack of directional dominance among bulls and bears.

This pullback in both open interest and leverage appetite suggests the market is waiting for a clear catalyst. Should a major development emerge, the price could react sharply in either direction given this setup.

On the spot ETH ETF front, trends are more balanced. Following a period of significant outflows, June saw several days of modest net inflows. While overall volumes remain soft, the shift from continuous selling to gradual accumulation marks a notable departure from previous months.

Network metrics soar to all-time highs despite price drop

Even as ETH prices languished, the Ethereum network delivered stellar fundamentals in the first quarter of 2026. The number of monthly active addresses hit a record average of 13.2 million. Total transaction count surged to 200.4 million, underscoring Ethereum’s status as a leading blockchain for smart contracts and decentralized applications.

The network’s transaction throughput reached a new high at 25.78 transactions per second. Meanwhile, average transaction fees fell by 47.9% for the quarter, following the Fusaka upgrade in December, which increased data capacity and reduced congestion-related costs.

Glossary: Data capacity refers to the amount of data a blockchain network can process in a given period. Higher capacity helps lower network congestion and transaction costs.

The total value of tokenized commodity assets on Ethereum soared by 60% from the previous quarter to reach $4.7 billion, with most of the growth fueled by gold-backed tokens. Ethereum now dominates the tokenized commodity market among the top five blockchain platforms, holding an 84% share.

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