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Ethereum risks drop to $1,200 as Tether briefly tops it in valuation

Ethereum risks drop to $1,200 as Tether briefly tops it in valuation

Tether briefly moved ahead of Ethereum by market capitalization during a sharp June 26 sell-off, underscoring defensive rotation into stablecoins as Ether sank into the $1,500-$1,600 range before recovering.

ETH
USDT

Fact Check
10x Research's own X posts (@10xResearch) explicitly state that if ETH loses its ~$1,600 support, $1,200 (or $1,100-$1,200) is the next target, and attribute the pressure to spot ETF outflows, weak institutional demand, EF layoffs, and macro headwinds (hawkish Fed, stronger dollar)—directly matching the claim. Multiple outlets (crypto.news, cryptobriefing, odaily citing Cointelegraph) independently confirm that USDT briefly surpassed Ethereum in valuation during the selloff before ETH recovered. A minor framing difference exists—some report the flip by circulating market cap (~$186B) and one by fully diluted valuation—but all describe the same brief flippening event, consistent with the claim's 'briefly moved ahead... before Ether recovered.'
Summary

Ethereum was holding around a $1,600 support level, but 10x Research said a break below that area could send the token toward $1,200. During the June 26 sell-off, Ether fell into the $1,500 to $1,600 range and briefly slipped behind Tether’s USDT by market capitalization before recovering. Validated figures in the new report put USDT at roughly $186.06 billion and Ethereum at about $185.66 billion during the intraday crossover, while earlier CoinGecko data cited by Cointelegraph had shown USDT near $186 billion and Ether below $185 billion before rebounding. The move was temporary rather than a lasting change in the rankings, but it highlighted defensive rotation into dollar-pegged stablecoins during broader market weakness. 10x Research had pointed to ETF outflows, weak institutional demand, low on-chain accumulation and macro headwinds weighing on Ethereum sentiment.

Terms & Concepts
  • market capitalization: The total value of a token’s circulating supply at current market prices.
  • stablecoin: A crypto token designed to track a stable asset, usually the U.S. dollar.
  • on-chain accumulation: A buildup of token holdings recorded on blockchain networks, often watched as a sign of investor demand.