ETH drops sharply 1.81% in 15 minutes: Technical overbought pullback and a long squeeze resonance trigger short-term selloff

Between 00:15 and 00:30 UTC on June 4, 2026, ETH suffered a sharp drop of 1.81% within 15 minutes. Its price fell from 1,819.68 USDT to 1,783.9 USDT, with a range of 1.97%, indicating a notable increase in short-term volatility.

The main driver behind this move is a pullback demand following severe technical overbought conditions. The RSI rose to 76.54, entering the overbought zone. The MACD formed a bearish cross and showed a top divergence signal. Multiple technical indicators stacking together created a strong bearish setup. Short-term longs took profits, triggering a chain of liquidations.

At the same time, extreme long/short imbalance in the derivatives market amplified the selloff. In early June, ETH futures trading volume surged 53.66% to $3.188 billion. Within 24 hours, long positions were liquidated by $50.63 million, and the long/short ratio reached 4.6:1. When the price started to drop, large amounts of long exposure were forced to close, creating a cascading effect. In addition, hawkish comments from Federal Reserve officials, Bitcoin’s near 11% drop in the same period that cooled market sentiment, and seasonal factors—ETH has performed relatively weak in June history (7 times of negative returns in the past 10 years)—all contributed to macro pressure. On-chain data shows some whales reduced their ETH holdings at high levels to exchanges, but long-term holders are still continuously withdrawing to exchanges, indicating a split between short-term traders’ sell pressure and institutions’ long-term positioning.

In the short term, technicals have already broken below daily moving-average support. The MACD bearish cross is continuing, and high-leverage longs in derivatives still face liquidation risk—investors should watch for an inertia-driven downside move. Support to watch is the low of the $1,750 monthly CRT range. If it breaks, ETH may further test the lower band of the 1720-day Bollinger band.