Ethereum Dives Below $2,000 as AI Stock Shock Rattles Crypto

Ethereum lost its grip on the $2,000 level Friday, sliding roughly 6% over 24 hours to trade near $1,932. The drop tracked a sharp selloff in artificial intelligence stocks, which Invezz tied to reports of Nvidia CEO Jensen Huang's resignation following allegations about his personal relationships and national security concerns. The broader crypto market felt it too: total market capitalization fell about 5.4% in the same window.

The derivatives market absorbed the brunt. CoinGlass data cited by Invezz puts roughly $285.4 million in ETH positions liquidated in 24 hours, with long positions accounting for $258 million of that. In other words, the traders betting on higher prices took the worst of it as ETH broke below the $1,971 support level on a daily close.

Institutional money is heading the other way. US spot Ethereum ETFs logged $144.8 million in net outflows Wednesday and another $8 million Thursday, according to SoSoValue, with just one positive net flow day since the start of November. That steady exit from regulated products adds selling pressure on top of the spot decline.

Technically, the picture stays bearish. ETH is trading under all three of its major daily EMAs — the 20-day near $2,227, the 100-day around $2,320 and the 50-day at roughly $2,334 — with resistance stacked between $2,227 and $2,334. The 14-day RSI has sunk to about 24 and the Stochastic Oscillator sits near 8, both flashing oversold.

If sellers keep pushing, Invezz flags the next support zones at $1,827 and then $1,706. Any bounce faces a first hurdle at $2,101, followed by $2,204, before buyers could even think about challenging those EMAs.