Ethereum (ETH) has broken below the critical psychological support level of $1,900, trading near $1,868 at press time, a decline of 2.88%. This drop follows a significant $43 million in net outflows from Ethereum spot ETFs on February 27, according to data from SoSoValue. The outflow, led by BlackRock's IBIT Ethereum Trust (ETHA), ended a three-day inflow streak that had brought in over $170 million.
The selling pressure coincided with escalating geopolitical tensions between Iran and Israel on February 28, 2026, which triggered a broad risk-off sentiment across global markets. This environment led to aggressive liquidations of leveraged positions, expanding volatility and accelerating ETH's decline. Technically, the breakdown below $1,900 on the 4-hour chart shifted short-term momentum decisively bearish, with the price collapsing below all four major exponential moving averages (EMAs).
Market data reveals a complex picture: while open interest in ETH derivatives dropped 8.33% to $23.73 billion, trading volume surged 10.97% to $57.84 billion. Analysts now identify $1,800 as the next decisive support level. A failure to hold this zone could expose ETH to fresh lows, potentially threatening the integrity of a broader bullish pennant structure visible on the monthly chart.
Despite the price weakness and panic, on-chain metrics offer a contrasting narrative. Exchange reserves for ETH continued to decline, suggesting coins are being moved off trading platforms—a behavior typically associated with accumulation rather than panic selling. This pattern, alongside a historical surge in transaction count mirroring the 2017 cycle setup, implies that underlying conviction may remain among some investors, positioning for a potential future transition rather than a market collapse.
