Ethereum dips below $2,000 as buy-the-dip calls surge 2.4-to-1

Retail traders are betting on an Ethereum rebound at a 2.4-to-1 bullish ratio, even as the broader crypto market bleeds from geopolitical shock and institutional outflows.

Ethereum fell below $2,000 for the first time in weeks on May 28, as a cascade of liquidations and ETF outflows compounded selling pressure from US-Iran tensions.

"The social sentiment ratio of 2.4 bullish posts for every bearish one suggests retail is treating this dip as a buying opportunity rather than an exit signal," Santiment said in a market note.

The drop came as total crypto liquidations reached $930.55 million across 165,000 traders in 24 hours, with Ethereum long positions accounting for $239.41 million of that total, per CoinGlass data. Spot Ethereum ETFs have posted outflows for 11 consecutive days, removing a key source of institutional support. The broader selloff was triggered by fresh US airstrikes on Iran near the Strait of Hormuz, which pushed oil prices higher and reinforced expectations that the Federal Reserve will hold rates steady.

Ethereum broke both the $2,000 level and its rising channel in the same move. If it closes below $1,980, the next meaningful support sits around $1,850, with $1,700 as the next backstop. A reclaim of $2,100 on strong volume could trigger a relief bounce toward $2,250 to $2,300, but sellers currently control the trend.

The Santiment data captures a rare moment of retail optimism at a price floor. The 2.4-to-1 bullish-to-bearish ratio is the kind of reading that, historically, has preceded short-term rallies when accompanied by actual accumulation. Whether that sentiment translates into buying pressure depends on macro conditions that remain firmly in control of the narrative.

The Crypto Fear and Greed Index has collapsed to 22, deep inside fear territory, suggesting most traders are cutting exposure rather than adding it. That tension — between retail calls to buy the dip and institutional flows heading the other way — defines the current market structure.

Ethereum's decline is part of a broader rout that erased nearly $1 billion in leveraged positions across the crypto market. Bitcoin fell below $73,000, XRP slipped under $1.30, and Solana dropped near $80. The total crypto market cap fell to roughly $2.54 trillion, down 3.1% in 24 hours, according to CoinGecko.

This article is for informational purposes only and does not constitute investment advice.