Ethereum (ETH) Price Dives Below $2,000 as US NFP Tilts Markets Bearish

Ethereum (ETH) experienced significant losses over the weekend as the highly anticipated White House Summit failed to lift market sentiment. Instead, the latest US Non-Farm Payroll (NFP) report dominated investor outlook, highlighting rising unemployment and increasing inflation pressures.

Ethereum (ETH) price experienced substantial losses over the weekend as the highly anticipated White House Summit failed to lift market sentiment. Instead, the latest US Non-Farm Payroll (NFP) report dominated investor outlook, highlighting rising unemployment and inflation pressures.

As a result, ETH price tumbled below the psychological $2,000 level, trading as low as $1,998 on Binance by Sunday morning, marking an 8% daily decline. The drop exceeded Bitcoin’s 4% losses within the same timeframe, signaling stronger bearish momentum within ETH spot markets.

The selling pressure has been exacerbated by mounting fears of further Federal Reserve tightening in response to rising inflation metrics. With investors now eyeing the next Consumer Price Index (CPI) report, ETH price could struggle to gain meaningful traction unless macroeconomic conditions shift favorably.

BlackRock ETF Led Outflows with $11 Million Sell-off After US NPF Data

Amid rising unemployment and inflation triggers, institutional investors are reallocating capital away from crypto markets toward fixed-income securities, driving bond yields higher across global markets. This shift in investor sentiment has translated into substantial outflows from Ethereum ETFs.

According to on-chain analytics provider SosoValue, Ethereum ETFs recorded $23 million in outflows on Friday, the same day the US NPF report was released. Among the largest liquidations, BlackRock’s iShares Ethereum ETF saw an $11 million capital flight, the highest single-day outflow among Ethereum-focused funds.

The rapid outflows in Ethereum ETFs suggest that institutional investors are repositioning their portfolios in anticipation of further downside in crypto markets. If Ethereum ETF outflows continue into the coming week, ETH price could struggle to mount a sustained recovery.

Ethereum Price Forecast: Death Cross Pattern Signals Deeper Decline Toward $1,850

Ethereum price forecast signals have taken a decisive bearish turn, with ETH plunging 8.3% on Friday to test support near $2,000. The daily chart reveals a concerning technical setup, as ETH struggles below key moving averages, with a confirmed Death Cross between short-term EMAs signaling prolonged downside risks.

If Ethereum closes below the critical $2,000 level, selling pressure could accelerate, targeting the next major support at $1,850, where historical demand has previously stabilized declines.

The Bollinger Bands show ETH trading at the lower band, suggesting it is in oversold territory. However, the absence of a significant bullish reaction underscores weak buying momentum. The MACD histogram remains in deep negative territory, with its signal line widening against the MACD line—affirming that bearish momentum is strengthening rather than reversing. While a relief bounce cannot be ruled out, any recovery toward $2,250 or $2,433 would likely face intense resistance as sidelined sellers look to re-enter.

The heightened leverage in derivatives markets could amplify price swings. If ETH loses $2,000 decisively, long liquidations may accelerate a cascade effect, making $1,850 the next crucial test for bulls. Conversely, a close above $2,200 could shift sentiment toward a bullish retracement.

Ethereum Price Outlook: Key Levels to Watch This Week

For Ethereum to break its bearish grip, ETF inflows must show signs of stabilization, particularly from major asset managers like BlackRock. If institutional demand returns, ETH could attempt to reclaim the $2,100 level and challenge the $2,250 resistance zone.

On the flip side, if macroeconomic headwinds persist and ETF outflows accelerate, Ethereum risks dropping below $1,950, potentially testing lower support at $1,850. With US CPI data and Federal Reserve commentary on the horizon, traders should remain cautious, as Ethereum’s price action could see heightened volatility in response to broader market shifts.

Overall, Ethereum remains vulnerable to further downside unless it reclaims key resistance levels and sees a resurgence in institutional demand.

Frequently Asked Questions (FAQs)

1. Why did Ethereum price drop below $2,000?

After a tumultuous weekend of trading, Ethereum price fell below the crucial $2,000 level on Friday morning in Asia. The cryptocurrency was trading at $1,998 on Binance at around 7:30 AM Singapore time, down 8% over the past 24 hours.

The cryptocurrency slid further after the latest Non-Farm Payroll (NFP) report from the US showed that despite a positive reading with 235,000 jobs added in March versus expectations of 224,000, the unemployment rate also rose to 3.8% from February’s 3.7%, while economists had anticipated a drop to 3.6%.

The report also showed that average hourly earnings rose 0.4% in March from the prior month, aligning with economists’ projections. However, February’s reading was revised down to 0