An analysis said Ethereum has handed short-term control of the market to sellers after failing to break above $2,400 and slipping below $2,150.

On May 18, local time, blockchain media outlet Cointelegraph reported that Ethereum retreated after being turned back at $2,400 resistance last week. It fell as low as around $2,100 on May 18, and on May 17 it hit $2,090 on Bitstamp, its lowest level since April 17.

Aggressive sell orders in the Binance futures market and outflows from Ethereum investment products were cited together as drivers of the decline. Based on TradingView data, Ethereum traded around $2,100, down 12 percent from a local peak of $2,420 on May 6.

In particular, Binance's taker buy volume indicator topped $1.1 billion during a 1-hour period on May 17. The indicator reflects the total dollar amount of aggressive sell orders placed by traders in the Binance futures market. When the figure surges during a price decline, it is interpreted as a sign that short-term bearish pressure or forced risk reduction has increased.

CryptoQuant analyst Amr Taha (아므르 타하) pointed to a spike in large aggressive sell volume on Binance as Ethereum tested key lower levels. It means market participants are putting more weight on liquidations and risk reduction than on defending the decline.

Institutional flows were also not supportive. According to SoSoValue tallies, spot Ethereum exchange-traded funds (ETFs) posted net outflows for five straight trading sessions, with cumulative outflows totaling $255 million. Analyst Whale Factor said, "Ethereum's institutional demand momentum has hit a limit."

The same trend was seen in global Ethereum investment products. CoinShares data showed net outflows of $249 million in the week ended May 15, the largest since Jan. 30. With money leaving both spot ETFs and global products, selling dominance strengthened across both spot and derivatives markets.

Still, the $2,000 to $2,100 band is being cited as a short-term support level. Glassnode's cost-basis distribution data show about 3.85 million ETH with an average purchase price of $2,000 to $2,100. Some see a possibility that holders could buy to defend their average cost in this range, which could partly cushion a further sharp drop.

From a short-term technical perspective, whether $2,000 holds has emerged as a key variable. Analyst Ted Pillows (테드 필로우스) said Ethereum fell below $2,100 after failing to hold a $2,150 support zone. Donald Dean (도널드 딘) said that if buyers fail to defend a low-volume support area near $2,100 on the daily chart, the likelihood of breaking below the lower edge of an ascending channel would increase. CryptoBully (크립토포릭) also warned that further declines could follow if the area fails to hold.

Conditions for a bullish reversal were also laid out. Chief executive Joseph Chalom Sharplink (조셉 샬롬 샤프링크) said Ethereum would need three catalysts to turn higher again: passage of the U.S. Clarity bill, a recovery in broader market risk appetite, and growth in tokenisation of real-world assets (RWA) based on Ethereum.

Ultimately, whether $2,000 holds is increasingly likely to determine near-term direction. Downside pressure could persist if aggressive futures selling and ETF outflows continue, but there remains room for losses to be limited if buying flows into a zone with a heavy concentration of large cost-basis buying.

$ETH Ethereum - Moving in the Channel, at lower support Current upper target is $2501 at the fib level. Price looks like it might test the lower trendline at $2100. Lower volume shelf support is near $2000. If price moves above $2501, next higher target is $2970. pic.twitter.com/gU6NG2TBnm