Ethereum Drops 4.56% to $2,215, $250 Million in Longs Liquidated

Ethereum's price has recently broken through its support level, leading to significant liquidations and raising concerns about its ability to hold the $2,000 mark. After more than a month of sideways movement, Ethereum's price finally broke through its range lows on June 21st, dropping 4.56% to $2,215. This breakdown resulted in over $250 million in long positions being liquidated, as overleveraged bulls were caught off guard.

While this could be seen as a typical leverage reset, on-chain data suggests a more significant structural shift may be underway. According to AMBCrypto, Ethereum's $2,000 support level could be increasingly exposed. Global tensions have also contributed to the market's volatility, with the crypto market erasing nearly 3.5% of its total valuation in under 72 hours. The U.S. entering the Middle East conflict further exacerbated the situation, leading to a surge in risk-off sentiment and capital flight. Ethereum was particularly hard hit, shedding 9.16% and breaking down to $2,215.

Ethereum's Coin Years Destroyed (CYD) spiked to a six-month high, indicating that older, long-dormant coins suddenly came to life. This surge in CYD, along with strategic exits by large holders, suggests a psychological inflection point. Long-term holders, typically the market's backbone, are showing signs of fading conviction. When smart money steps back, retail FOMO doesn't stand a chance.

From a structural standpoint, Ethereum would require a near 12% retracement from its current price to revisit the psychologically critical $2,000 support level. Given ETH’s sharp drawdown, this scenario is no longer far-fetched. Q2 is shaping up to close on a volatile note, with escalating geopolitical tensions flipping sentiment hard into risk-off mode. Until an official ceasefire is declared, the market remains exposed to fresh waves of macro-driven FUD.

Positioning data already reflects bearish pressure, with a sizable $58.69 million long liquidity cluster forming around $2,239. This suggests traders are aggressively leaning short. If conviction stays this low, it may only be a matter of time before another liquidity sweep sends Ethereum cascading below $2,200, setting the stage for a potential retest of the $2,000 zone.