Ethereum price fell below the $2,000 mark for the first time since March 29 as renewed U.S.-Iran hostilities triggered a broad crypto sell-off and pushed traders into defensive positions. ETH traded near $1,980 at press time, down about 4% to 5% over the past 24 hours. The decline came as the wider crypto market lost about $80 billion in value following fresh U.S. military strikes and Iranian retaliation, ending hopes that a temporary ceasefire would hold. The sell-off also followed continued outflows from U.S. spot Ethereum ETFs and a wave of market liquidations across crypto assets. Bitcoin also dropped to multi-week lows as investors reacted to renewed pressure around the Strait of Hormuz and rising geopolitical risk. ETH Falls Below Key Psychological Level Ethereum’s move below $2,000 has drawn attention because the level has acted as an important psychological marker for traders. Market data showed retail discussion quickly shifting toward “buy the dip” reactions after the drop. Santiment data suggested that many traders are still treating the decline as a buying opportunity rather than a panic event. Historically, when retail traders remain optimistic during a sharp decline, prices can sometimes face further pressure before stabilizing. Source: X The current move follows a rejection from the $2,400 resistance zone. ETH failed to hold the $2,135 to $2,195 range and later broke below short-term support near $2,060. That level now becomes the first resistance to watch. On the downside, the first major support is near $1,873. If ETH loses that area, the next demand zone sits between $1,805 and $1,755. A deeper decline could bring the $1,693 level into view. For bulls, ETH needs to reclaim $2,060 to reduce short-term bearish pressure. A move above $2,135 to $2,195 would strengthen the recovery attempt and could allow another test of $2,315 to $2,400. Standard Chartered Maintains Bullish ETH View Despite the price decline, Standard Chartered remains positive on Ethereum’s long-term outlook. Geoffrey Kendrick, the bank’s global head of digital assets research, compared ETH’s current setup to Amazon during the 2001 dot-com downturn. Kendrick said Ethereum’s price weakness does not reflect its internal network metrics. He pointed to transaction activity and total value locked measured in ETH terms, both of which remain near record levels. He said Ethereum’s internal business metrics are moving in the right direction even as the token price has fallen. Kendrick maintained his long-term ETH targets, projecting $4,000 by the end of 2026 and $40,000 by the end of 2030. Standard Chartered also expects the ETH-BTC ratio to recover toward its 2021 highs near 0.08 by the end of the decade. ETH has weakened against Bitcoin since its August 2025 high, with the ratio down about 37% over that period. Kendrick’s view is partly based on Ethereum’s role in stablecoins and tokenized real-world assets. He expects the stablecoin market to grow to about $2 trillion by the end of 2028, up from roughly $321 billion today. Ethereum currently hosts about 54% of stablecoins, according to the data cited. Stablecoins also account for about one-third of Ethereum transactions in 2026 and around 60% of gross total value locked on the network. Stablecoins, RWAs and On-Chain Risks Shape Outlook Ethereum also remains a leading network for tokenized real-world assets. Standard Chartered said Ethereum hosts about 62% of non-stablecoin RWAs and 68% of active on-chain loans. Kendrick said growth in RWAs could increase Ethereum transaction activity and total value locked over time. He also pointed to the planned Ethereum Economic Zone, which is expected to improve asset movement across Ethereum-compatible chains and reduce dependence on bridges. Regulatory progress in the United States may also affect Ethereum’s outlook. Kendrick cited the Clarity Act and broader crypto market structure work as possible support for decentralized finance activity if clearer rules are adopted. Still, near-term market data remains mixed. Analysts have noted rising failed Ethereum transactions and a gradual increase in exchange inflows. Higher exchange inflows can suggest that some holders are preparing to sell, while failed transactions may reflect network friction. Source: X Crypto analyst David Hoffman also said he sold his ETH holdings while remaining bullish on the Ethereum network. He argued that value is increasingly flowing to applications, layer-2 networks, stablecoins, and on-chain assets, rather than directly to ETH. Ethereum’s short-term direction now depends on whether buyers defend the $1,873 area and whether ETH can reclaim $2,060. A recovery above that level could ease selling pressure, while failure to hold support may keep ETH exposed to another move toward $1,755.
