Around 250 activists joined in the protest.
A local popular committee spokesman, Hani Halabiya, said that Israeli forces raided the village in the afternoon and gave activists an hour to evacuate, threatening to use force.
They declared the area a closed military zone, Halabiya added.
E1 is an area northeast of Jerusalem and west of the illegal Israeli settlement of Maale Adumim. Israeli plans for settlement construction in the area have been strongly opposed by the international community, including the US.
Critics say Israeli settlement construction in E1 would divide the West Bank in two and make the creation of a contiguous Palestinian state — as envisaged by the internationally backed two-state solution to the Palestinian-Israeli conflict — virtually impossible.
Israeli forces tear down protest tents set up near Abu Dis
Several people said they were assaulted during the incident, with soldiers firing stun grenades into the crowd after scuffles.
A bulldozer then removed all of the tents.
The protest village was set-up on Tuesday evening by Palestinian activists and local Abu Dis residents to demonstrate against Israeli plans to forcibly displace Bedouins.
Spokesman for a East Jerusalem local committee, Hani Halabiya, told Ma’an that activists would set up the tents again on Wednesday.
General-Secretary of the Palestinian National Initiative, Mustafa Barghouthi, said the removal of the tents “won’t break the resilience of the Palestinian residents of Abu Dis, the Jordan Valley and the Bedouins to protect their lands.”
In January 2013, Palestinian activists set-up over 25 tents and a medical center in the E1 area east of Jerusalem to protest Israeli settlement plans and protect Palestinian land from annexation.
The protest village, called Bab al-Shams, or ‘Gate of the Sun’, was later demolished by Israeli forces.
Over the following months, activists set up the Al-Karamah (Dignity) protest village in Beit Iksa, and the Ahfad Younis village in Eizariya.
Construction in E1 would divide the West Bank and make the creation of a contiguous Palestinian state – as envisaged by the internationally backed two-state solution to the Palestinian-Israeli conflict – almost impossible.