Why is Ethereum Falling? 5 Critical Factors Pressuring ETH Price

Geopolitical Tensions and Risk Aversion The cryptocurrency market remains under general downward pressure as global military and political tensions have pushed investors into a "risk-off" mode.
Regional conflict risks and uncertainties regarding nuclear negotiations have driven up oil prices, triggering capital outflows from risky assets like Ethereum.
Technical Weakness and Critical Levels Ethereum has remained under the control of bear market dynamics since falling below its 200-week moving average of $2,450 in early February.
Efforts to reclaim the psychological and technical $2,000 boundary have failed, leading to the liquidation of long positions and deepening selling pressure.
Analysts point to the $1,850 – $1,900 levels as new critical support zones.
Institutional Sales and ETF Outflows Profit-taking by large investors and institutional players is exerting significant pressure on the market.
The exit of Founders Fund, co-founded by Peter Thiel, by selling its shares in the Ethereum treasury company ETHZilla, resonated across the market.
Additionally, spot Ethereum ETFs recorded a total net outflow of $41.83 million in recent days, with the largest outflow coming from BlackRock’s ETHA fund.
On-Chain Data and Market Sentiment According to Santiment data, retail investor interest is waning, and overall market sentiment has shifted into negative territory.
CryptoQuant data shows that leverage ratios on Binance have dropped to their lowest levels since last December.
These figures reveal low buyer appetite and suggest that investors prefer to remain cautious.
Fed Minutes and Macroeconomic Pressure The recently released Federal Open Market Committee (FOMC) minutes revealed a divergence of opinion among officials regarding interest rate cuts.
While some officials expect cuts as inflation nears the target, others advocate for maintaining a hawkish stance, increasing uncertainty.
The possibility of interest rates remaining higher for longer has strengthened the dollar index, causing capital to exit assets like Ethereum.
A sustained momentum above $2,000 and stability in global markets are expected for a price recovery.