The price of Ethereum (CRYPTO: $ETH) has broken down and fallen below $2,000 U.S. as cryptocurrencies continue to decline across the board.
The second largest cryptocurrency by market capitalization was trading at $1,993.85 U.S. early on May 29, having dropped below the key support level of $2,000 U.S.
Ethereum closes out the month of May having fallen 13%, including a 5% decline in the past five trading sessions. So far this year, ETH has decreased 33%.
The selloff comes as investors move away from digital assets and allocate capital to technology stocks, particularly ones associated with the artificial intelligence (A.I.) infrastructure buildout.
Analysts say that Ethereum and other cryptocurrencies have also been hurt by geopolitical uncertainty, notably the Iran war and rising gasoline prices.
There is also increasingly weak demand for digital assets among institutional investors and growing outflows from crypto exchange-traded funds.
Over the past nine trading sessions, investors pulled a combined $2.8 billion U.S. from about a dozen Bitcoin ETFs, surpassing any previous period of selling.
Analysts say there is likely to be further downside in Ethereum now that the price has broken down below $2,000 U.S. with few near-term catalysts on the horizon.
ETH could retest its low for the year of $1,823.20 U.S. reached on February 6.
Ethereum has fallen from an all-time high of $4,953.73 U.S. reached last August. Since then, the cryptocurrency has seen its price decline 60%.
COMTEX_482410997/2797/2026-05-29T11:52:36