Ethereum Price Forecast – Bears Eye $1,564 Support as Bitcoin Weakness Weighs on ETH

Highlights:

• Ethereum falls 1% as rising trading volume signals mounting short-term selling pressure across the crypto market.
• Bitcoin weakness, ETF outflows, and the war in Iran increase downside risks for Ethereum in the near term.
• Ethereum risks falling to the $1,564 support level, though the CLARITY Act could revive bullish momentum.

Ethereum (ETH) is slightly in the red today, reflecting the weakness prevailing across the cryptocurrency market intraday. When writing, Ethereum was trading at $1780.03, down 1.01% in the day. While the price shows weakness, Ethereum’s intraday trading volume is up 21.17% to $8.94 billion. 

Rising trading volume when the price is falling indicates that the average short-term investor in Ethereum is selling. This is driven by expectations that Ethereum could test even lower prices in the short term. The expectation of weakness in Ethereum’s price is now without basis.

Bitcoin Weakness Pushing Ethereum Price Lower

A key factor driving it is Bitcoin’s price action. Ethereum, like every other altcoin, trades in line with Bitcoin’s broader direction. At the moment, there is a clear weakness in Bitcoin’s price action. Not only has Bitcoin failed at a key resistance level, but its next major support is at levels below $60k. This is driving fears that Bitcoin could easily drop to prices under $50k.

$BTC is dragging the market lower, and the red is spreading across the majors.$ETH, $XRP, and $BNB are all following suit, while stablecoins stay flat.

This doesn't look like panic, it looks like capital rotating into safety.

In markets like this, patience often outperforms… pic.twitter.com/VVFOqhrUf3

— Jack (@WispOfDeFi) July 13, 2026

Such negative expectations are driving investors to believe that Ethereum could be headed much lower as well. Given that Ethereum has already lost the critical $2000 price level, Bitcoin’s weakness could position Ethereum for a drop to levels below $1500 in the short term. 

Softening Institutional Demand Pushing Ethereum Lower

Ethereum’s weakness is also exacerbated by softening institutional demand. In the last few weeks, Ethereum ETFs have been mostly net outflows. This goes to show that institutional capital, a key price support for the number two cryptocurrency, is expecting further correction as well. The impact is that retail capital is not participating much in buying Ethereum.

Driven by weakening institutional demand for Ethereum, retail investors are also increasingly short Ethereum, adding to downside pressure. For context, most of the Ethereum traders that have been liquidated in the last 24 hours were long, as short positions continue to pile up.

ETF buyers finally showed up again.

Spot Bitcoin and ether ETFs recorded $282M in combined inflows after eight straight weeks of outflows.

The streak is over but its only a small recovery compared to what left the market. pic.twitter.com/8l6PtyPCnt

— evans (@evans1vn) July 12, 2026

Iran War Escalation Adding to Ethereum Weakness

The prevailing Ethereum sellside pressure is likely to increase now that the macro environment is increasingly uncertain. Over the weekend, the Iran war escalated with both sides attacking. This has triggered a general risk-off sentiment in the market, and capital is piling more into the dollar, pushing anything traded in dollars lower.

The situation in the Middle East is worsened by Iran’s announcement of another closure of the Strait of Hormuz. The result is that oil prices could rise again, adding to the inflationary pressure the world has been facing recently. The consequence is that the Federal Reserve could opt to raise interest rates, a move that could further tank risk-on assets like Ethereum. 

CLARITY Act And Ethereum’s Energy Use Numbers Could Trigger Rebound

Despite all indicators pointing to Ethereum’s weakness in the foreseeable future, there are factors that could trigger a rebound. One of them is that Ethereum now has the lowest energy intensity of all major cryptocurrencies. This is a big deal, as it could attract climate-conscious investors, especially now that the world is dealing with the severe effects of climate change.

There is also the expectation that the CLARITY Act could pass within the month. Both of these two factors could see billions of dollars flow into Ethereum and trigger a rebound back to all-time highs. 

Technical Analysis – Ethereum Price Rejected at Critical Resistance Level

After a brief rebound, Ethereum bulls have been rejected at the $ 1,809.8 resistance level. If short sellers remain in control, the key level to watch for Ethereum is $1,564.7. A correction through this support could send Ethereum to levels as low as $ 1,300 in the short term.

However, if bulls regain control and push Ethereum price through the $1809.8 resistance, a rally to $2418.3 could follow. Of these two scenarios, a correction to the $1564.7 support is more likely. This is mainly due to the Iran war, which is driving investors into a risk-off state.