Ethereum Price Drops to $2,372 as ETF Inflows Slow

Ethereum (ETH) traded near $2,372 on Wednesday, September 2, down approximately 1.9% on the day and marking a 6.1% decline since Monday morning, as spot Ethereum ETF inflows slowed and market correlation to the S&P 500 increased amid Federal Reserve rate hike expectations [1]. The cryptocurrency's market capitalization ranged between $289.02 billion and $291.08 billion, with 24-hour trading volume between $13.34 billion and $15.61 billion [1].

Price Action and Market Drivers

Ethereum's recent decline saw it reach an intraday low of $2,356 on Wednesday, falling below the $2,438.85 weekly Fibonacci support level [1]. This retreat extends a broader pullback from August 27-28 highs near $2,510, representing a loss of roughly 5.5% from that range and 6.8% from its local peak of $2,545.88 [1]. Over the past week, ETH is down 0.86%, though it remains up 33.50% over the past month [1]. The current price of $2,372 is 52.04% below its all-time high of $4,946.05 recorded on August 24, 2025 [1].

Despite the price drop, spot Ethereum ETFs recorded their 12th consecutive day of inflows, totaling $10.95 million [1]. This figure, however, is significantly lower than the $1.42 billion in inflows observed over nine sessions in late August [1]. Ethereum's price is currently exhibiting an 86.8% 24-hour correlation to the S&P 500, with market sentiment influenced by approximately 70% odds of a Federal Reserve rate hike [1]. On-chain data indicates that 34.23% of the ETH supply is locked in staking, and exchange reserves have fallen to 14.92 million coins [1].

Technical Indicators and Liquidation Risks

Technical indicators suggest a weakening short-term outlook. The daily Relative Strength Index (RSI) has fallen to 59.46, still above the neutral 50 line but trending lower [1]. The four-hour MACD is negative at approximately minus 13.66, with the histogram also negative, indicating short-term selling control [1]. Daily trading volume declined 21% during the rejection at the $2,500 resistance level [1].

Derivatives data highlights asymmetric liquidation risks, with approximately $1.08 billion in long liquidations positioned below $2,353, compared to $568 million in short liquidations above $2,587 [1]. The downside cluster is 90% larger and closer to the current price [1]. Over the past 24 hours, $60.27 million in long positions were liquidated, accounting for 82% of the total ETH futures liquidations [1]. The long/short ratio of 0.9448 suggests a slight lean towards short positioning in the market [1].

What to watch

• Weekly Close above $2,438.85: A sustained close above this 0.618 Fibonacci retracement level could re-establish a bullish structure and target the 0.5 retracement at $2,919.89 [1].
• Break below $2,340: A sustained break below the 78.6% Fibonacci retracement at $2,340 could trigger a deeper pullback towards $2,164 [1].
• Federal Reserve Meeting: The outcome of the upcoming Federal Reserve meeting and its implications for interest rates will likely influence broader market sentiment and ETH's correlation with traditional assets [1].

The current price action suggests that despite continued institutional inflows into spot Ethereum ETFs and strong staking participation, broader macroeconomic concerns, particularly around interest rates, are exerting significant downward pressure on ETH's price [1].