ETH Slides to 2023 Levels: What’s Behind the Latest Drop?

Ethereum has entered one of its sharpest corrective phases in recent years and dropped below the $2,000 mark to trade near the price levels last seen in 2023. The move has unsettled investors, not only because of the quick decline but also since it broke a long-defended psychological and technical support zone.

Breakdown Below $2,000 Triggers Acceleration in Selling

The asset experienced an intensified decline after breaking below the $2,000 support level. The movement has acted as a price barrier since mid-2025. 

The Kobeissi Letter market commentary states that the breach led to a market shift from controlled price declines to mandatory asset liquidation as the market lost its fundamental support levels.

Ethereum is now down around 38% year-to-date, and at one point had fallen over 34% in a single week. It is also underperforming Bitcoin during the same period. 

Once ETH slipped below $2,000, selling momentum accelerated as stop losses were triggered and confidence weakened, pushing prices briefly toward the $1,750-$1,800 zone.

Technical Structure Remains Fragile

Ethereum corrected over 8% last week hitting a low of $1,747, the lowest level seen since May 6, 2025, before recovering to $2,149. The current price stands at approximately $2,080. 

If ETH continues the ongoing decline, it could again reach Friday's low of $1,747. The daily chart shows an RSI reading of 31 near the oversold territory. This suggests that bears have control. 

The MACD showed a bearish crossover further strengthening the negative outlook.

If ETH manages to break above $2,149 with sustained strength, the asset could continue its upward movement to the next resistance level at $2,500.

Fundamentals Tell a Different Story

Despite the price collapse Ethereum’s on-chain and network fundamentals stay strong. The current staking demand shows continuous growth since more than 4 million ETH currently exists in the staking entry queue, while only 31,915 coins remain in the exit process with an estimated wait time of 70 days. 

This indicates that long-term holders continue to invest their capital instead of selling their assets. 

Nansen reports that active Ethereum addresses have increased by 38% over the last 30 days to reach 15 million, while transaction volumes grew by 37% to exceed 70 million and the network generated fees approaching $20 million. 

Ethereum maintains its position as the leading platform for real-world asset tokenization, as it controls over  70% of the market, proving its strength in institutional blockchain applications.

Also Read: Ethereum to $10,000? The Shocking Truth Behind the Prediction

Outlook: Short-Term Pain, Long-Term Debate

Ethereum has rebounded from its recent low at $1,747 to currently trading above the $2,000, while its overall market direction is still uncertain. 

The MVRV valuation metric has reached historical levels that indicate long-term accumulation, yet the current market situation shows ongoing volatility due to technical damage and weak risk behavior.