Ethereum drops toward $1,600 as rejection opens path to $1,000 support

Ethereum's rejection at $1,750 resistance has reopened a downside scenario that targets the psychological $1,000 region.

Ethereum fell 4.2% to $1,588.40 as of 05:00 UTC on June 27 after a relief bounce failed at $1,750 resistance, reopening a path toward $1,000 support.

"ETH is printing lower highs against a descending trendline that has held since mid-May, and the rejection at $1,750 confirms sellers remain in control," Daan Crypto Trades, a pseudonymous market analyst, said on X. Coinglass data shows $157 million in ETH liquidations over the past 24 hours, with longs accounting for $140 million of that total.

The rejection follows a period of structural weakness for Ethereum. The Ethereum Foundation completed a restructuring on June 23 that eliminated roughly 54 positions, or 20% of its workforce, while co-founder Vitalik Buterin disclosed plans to cut the foundation's annual budget by 40% starting in 2026. ETH is trading below its 20-day, 50-day, and 100-day exponential moving averages at $1,753, $1,901, and $2,064, respectively, according to CoinGecko data.

A break below the $1,580 support zone would expose the $1,524 level, with the next major floor at $1,404. A sustained decline below those levels would open the path toward $1,155 and eventually the psychological $1,000 region — a level not tested since early 2024.

The macro backdrop has compounded Ethereum's technical weakness. Bitcoin fell below $60,000 on June 25, touching $58,000 before recovering, as one of the largest options expiries of the year saw $10.6 billion in contracts settle, according to Deribit data. The broader risk-off move was driven by a strengthening US Dollar Index, which hit a 13-month high, and persistent inflation data that pushed fed funds futures to price out near-term rate cuts.

Ethereum's on-chain metrics reflect the bearish turn. Active addresses on the Ethereum network have declined 12% over the past 30 days, while total value locked across Ethereum DeFi protocols has slipped to $38.2 billion from $44.1 billion a month earlier, per DefiLlama data. The decline in TVL suggests capital is rotating out of Ethereum-based applications rather than simply being repriced by the token's drop.

Ethereum Foundation Restructuring Adds Uncertainty

The organizational changes at the Ethereum Foundation have introduced an additional layer of uncertainty. Beyond the 20% workforce reduction, nine senior-level officials have departed since January, including former protocol leads Tim Beiko and Josh Stark. A new research entity, Ethlabs, launched on June 22 with backing from BitMine, SharpLink, and Ethereum co-founder Joe Lubin, raising questions about talent fragmentation within the ecosystem.

Buterin acknowledged the cost of the restructuring in a blog post published June 23, saying he respects his colleagues "far too much to pretend that there was not much that is lost." The foundation plans to reduce its annual treasury expenditure from approximately 15% to roughly 5% annually after 2030.

Key Levels to Watch

Ethereum's immediate support sits at $1,580, a level that has held twice in the past week, forming a potential double bottom on the daily chart. A decisive break below that level would target $1,524, followed by $1,404. On the upside, ETH must reclaim $1,680 to $1,700 to establish a higher low, with a move above $1,750 needed to invalidate the current downtrend.

The $1,000 region represents a 37% decline from current levels and would mark Ethereum's lowest price since January 2024. Such a move would likely trigger cascading liquidations across leveraged positions and a broad altcoin sell-off, given Ethereum's role as the benchmark for the altcoin market.

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