An early Ether (ETH) investor sold their ETH holdings over the past week as the price headed toward $2,000, sparking fears of further losses. However, onchain data tells a different story as traders speculate where ETH/USD might bottom.

Key takeaways:

• An early Ethereum whale sold $136 million in ETH, adding pressure as Ether trades below the $2,000 level.
• Onchain data shows no evidence that older ETH investors are selling en masse.
• Analysts warn the ETH price could fall further toward the $1,500 support.

Ethereum OG whale sells $136 million ETH

An old Ethereum whale, an early investor holding tokens since the network’s first years, sold 55,000 ETH worth about $112.25 million and 9,442 ETH worth roughly $24 million over the past week. 

Related: Ether bears at risk of $2B squeeze as short positions build around $2K

The early Ether investor offloaded a combined $136 million at an average price of $2,041 per ETH, according to blockchain data tracker Lookonchain. 

Selling by an old ETH wallet. Source: Lookonchain

However, this does not appear to be part of a wider trend, as an analysis of Ethereum’s supply, based on “HODL waves,” reveals that a significant portion of Ethereum supply remains unmoved on various time frames. In fact, the share of the supply by older holder cohorts has generally increased over the past year.

More recently, the 3m-6m investor cohort saw a notable reduction in supply, which has dropped to 9% from 13.5% on May 19. The 1w-1m holder cohort has also seen its supply holdings drop to 2.6% from 4.76% over the same period. This suggests that most of the supply changing hands is being done by short-term holders.

Ethereum: HODL Waves. Source: Glassnode

In fact, supply held by the 5y-7y investor cohort has increased slightly to 9% from 8.59% on May 19. 

Moreover, the chart below shows that the supply last active 5-7 years ago has only seen a modest rise in recent weeks and is well below the activity seen in 2022 when ETH price bottomed below $1,000.

ETH: Total supply last active 5 years to 7 years. Source: Glassnode 

Except for several significant players announcing that they have sold a part or their entire ETH holdings recently, there’s no real broad trend to support the argument that Ethereum OGs are selling en masse.

Ether price drop to $1,500?

Since Thursday, ETH/USD has been oscillating around the $2,000 psychological level as traders braced for more price downside.

At the time of writing, ETH is trading at $1,980, down 2% over the last 24 hours and 6.5% on the week.

“This doesn’t look good for Ethereum,” analyst Alex Marzell said in an X post on Sunday adding:

“Momentum continues to favor the bears as $ETH moves closer to the next key support area.”

ETH/USD daily chart. Source: X/Marzell

Marzell was referring to the crucial support around $1,800, which analysts say must hold to avoid a deeper correction.  

Fellow analyst Merlijn The Trader said that the ETH/USD price action is “mapping perfectly onto a Wyckoff Accumulation structure,” as shown on the three-day chart below.

The analyst explained that ETH is currently in a “Phase B consolidation, post-selling climax” and was entering Phase C, where it would bottom below $1,500. 

ETH/USD three-day chart. Source: Merlijn The Trader

Another analysis by Echo Analysis said a bear flag breakdown projected ETH price drop toward $1,500 support.

ETH/USD daily chart. Source: Echo Analysis

As Cointelegraph reported, increasing supply on exchanges and declining ETF demand put ETH at risk of another leg down toward the $1,500-$1,700 demand zone.

The hacker behind the $293 million Kelp DAO exploit has laundered nearly all of the unfrozen stolen funds, or about $220 million, in just six weeks, according to Arkham data and onchain analysts.

The Kelp DAO hacker-tagged wallet appears to have laundered nearly all the stolen funds, with just $1.7 million remaining traceable in the wallet, according to blockchain data provider Arkham. The malicious actor drained 116,500 Kelp DAO restaked ETH (rsETH) on April 18, pushing the total amount stolen from crypto hacks to $630 million for April.

The funds were laundered in two layers: bridging to Bitcoin using crypto mixer Wasabi and then returning to Ethereum before withdrawing and depositing via mixing protocol Tornado Cash, according to onchain analyst Specter.

The laundering activity may significantly reduce the chances of recovering the remaining unfrozen funds.

An additional $71 million was frozen by Arbitrum’s Security Council on April 21. A governance proposal and a US court order previously approved the transfer of the frozen funds to an Aave-controlled multi-signature wallet for the rsETh recovery effort. The next hearing on the ownership claims tied to the frozen funds is set for Friday in New York, court documents show.

Kelp DAO Hacker-tagged wallet, total balance. Source: Arkham

The development comes a week after Kelp DAO said it restored its restaked Ether token as part of a five-week recovery effort, after the final tranche of 20,373.7 rsETH tokens was sent to the LayerZero smart contract responsible for locking, minting, burning and releasing rsETH during cross-chain transfers, Cointelegraph reported Tuesday.

Related: Verus bridge exploiter returns $8.5M after bounty offer

Crypto hacks decrease by 90% in May, but DeFi security concerns persist

Cryptocurrency hacks logged a significant decrease during May, but it wasn’t enough to soothe the growing concerns tied to the security of the decentralized finance (DeFi) industry.

Losses from cryptocurrency exploits fell to $68.3 million in May, marking a near 90% decline from the amount lost in April, according to crypto security platform CertiK. About $2.6 million was attributed to phishing attacks, while a total of $9.4 million was successfully recovered or returned.

Crypto exploit losses in May reached $68.3 million. Source: CertiK 

Still, the $293 million Kelp DAO exploit triggered wider concerns about the safety of the industry, prompting DeFi protocols to reevaluate the security of their oracle providers.

Within three weeks after the exploit, Bitcoin DeFi platform Solv Protocol and liquidity protocol Tydro both migrated to Chainlink’s Cross-Chain Interoperability Protocol (CCIP), seeking a more secure oracle provider.

Kelp DAO also migrated its rsETH token to Chainlink CCIP, moving away from its previous LayerZero-powered bridge after attributing the incident to weaknesses in its cross-chain setup. 

However, LayerZero said on April 20 that the exploit resulted from a single point of failure in Kelp DAO’s implementation, which relied on a single LayerZero DVN as the only verified path despite prior warnings against that configuration. 

Magazine: The legal battle over who can claim DeFi’s stolen millions 

For years, Strategy (MSTR) Executive Chairman Michael Saylor insisted he would never sell bitcoin BTC$72,675.37.

Yet on Monday, the largest company disclosed that it sold 32 bitcoin last week, its first sale in four years. The announcement prompted questions about whether one of bitcoin’s most prominent corporate advocates was changing course.

Most analysts don’t think so. While the transaction sparked debate among investors, they largely agree that the sale was too small to alter Strategy’s long-term bitcoin accumulation strategy.

The company on Monday said that it sold 32 bitcoin between May 26 and May 31 at an average price of $77,135, generating roughly $2.5 million to help fund dividend payments on STRC, its high-yielding perpetual preferred stock known as Stretch. Strategy still held more than 843,700 BTC at the end of May, meaning the sale represented about 0.004% of its total holdings.

While the announcement initially fueled concerns that Executive Chairman Michael Saylor was backing away from his long-held commitment to accumulating bitcoin, several analysts argued that interpretation misses the bigger picture.

TD Cowen analyst Lance Vitanza said reports suggesting Strategy had become a meaningful seller of bitcoin were overblown.

“Headlines suggesting that Strategy has meaningfully reduced its bitcoin position are, in our view, misleading,” Vitanza wrote in a research note. “The transaction was economically immaterial and does not alter the core accumulation thesis.”

Vitanza noted that management has discussed the possibility of limited bitcoin sales on several recent occasions as part of a broader financing strategy. He added that TD Cowen’s model already anticipated small tactical sales and therefore made no changes to its bitcoin accumulation assumptions or its $400 price target on the stock.

The analyst also pointed to signs that Strategy is rebuilding its cash position. The company also sold 801,944 shares of common stock and used part of the proceeds to replenish cash reserves after repurchasing $1.5 billion of convertible debt at a discount.

Benchmark analyst Mark Palmer reached a similar conclusion about the significance of the sale itself, saying he does not expect bitcoin disposals to become a primary source of funding for dividends.

“We do not expect Strategy to use bitcoin sales as a primary means of funding dividends on STRC and its other perpetual preferred stock issues,” Palmer said. “It is far more likely that the company will continue to replenish its cash reserve through equity issuance and then use reserve funds to pay dividends.”

Palmer, however, argued that the sale could change how investors view Strategy’s bitcoin holdings. “Now, investors should view Strategy’s bitcoin holdings as providing a viable backstop for the funding of preferred dividends,” he said.

Others viewed the transaction as a more meaningful signal.

Risk Dimensions CIO Mark Connors said the move demonstrates that Strategy is willing to prioritize the health of its capital structure over maintaining a strict no-sale stance on bitcoin.

“By selling bitcoin, Saylor has stated two things,” Connors said. “First, we will support our shareholders and creditors in every way… including by selling bitcoin.”

“Second, Saylor and Strategy have prioritized the health and perception of health of the MSTR capital structure over being a diamond-handed OG.”

The differing interpretations highlight the key question now facing investors. Analysts broadly agree that the 32-BTC sale was immaterial. What remains up for debate is whether it was simply a routine treasury decision or an early signal that Strategy’s approach to managing its vast bitcoin reserves is becoming more flexible.

Strategy is lower by 5% on Monday, while bitcoin has fallen back to a near two-month low of $71,000.

TLDR

• Global crypto exchange-traded products recorded $1.67 billion in outflows last week.
• Three-week cumulative outflows reached $4.21 billion as total assets under management declined to $141.9 billion.
• Bitcoin products led withdrawals with $1.44 billion in outflows, marking the largest weekly exit in 2026.
• United States spot Bitcoin ETFs accounted for $1.42 billion in redemptions, driven by institutional selling.
• Ethereum ETFs posted $257 million in outflows, extending their losing streak to three consecutive weeks.

Global crypto exchange-traded products have recorded $1.67 billion in weekly outflows, extending a three-week run of investor withdrawals.

According to CoinShares, the latest weekly report shows this is the second-largest outflow of 2026, with only the week ending Jan. 23 posting a higher figure. The firm reported that total redemptions over the past three weeks have reached $4.21 billion, while assets under management declined to $141.9 billion from $148 billion the previous week.

Bitcoin Products Drive Bulk of Withdrawals

Within the broader selloff, Bitcoin-linked funds accounted for most of the activity. CoinShares data shows $1.44 billion exited Bitcoin products globally, setting a new weekly record for outflows this year. The same report notes that year-to-date inflows into Bitcoin funds dropped sharply to $1.2 billion from $2.6 billion a week earlier.

Focusing on the United States, data from SoSoValue shows spot Bitcoin ETFs recorded $1.42 billion in withdrawals. This ranks as the third-largest weekly outflow for U.S. products on record, with domestic institutional activity cited as the primary driver behind the global decline.

At the same time, Ethereum-based products continued to see redemptions. CoinShares reported $257 million in global outflows from Ethereum funds, adding to losses recorded in previous weeks. U.S. spot Ethereum ETFs contributed $241 million of that figure, according to SoSoValue data, marking a third straight week of withdrawals for the segment.

Elsewhere in the market, participation narrowed among alternative assets. CoinShares data shows only five altcoins attracted notable inflows, down from nine in the prior week. XRP products led with $20.3 million in new investments, followed by Hyperliquid products at $10.8 million and Near Protocol funds at $7.6 million.

Regional Trends Highlight U.S. Dominance

Across regions, the United States remained the center of activity. CoinShares reported $1.63 billion of the total outflows originated from U.S.-based products. Meanwhile, Germany recorded $25.7 million in withdrawals after holding steady during earlier weeks, while Sweden and Hong Kong posted smaller outflows of $6.6 million and $4.5 million, respectively.

CoinShares Head of Research James Butterfill linked the sustained selling pressure to rising geopolitical concerns tied to Iran. In the same report, Butterfill stated that these risks have outweighed any market support from legislative developments such as the Clarity Act, drawing comparisons to a similar outflow period earlier in the year.

Bitcoin BTC$72,675.37 and most major cryptocurrencies remained under pressure as record outflows from U.S. spot bitcoin ETFs, renewed inflation worries from higher oil prices and weakening retail demand kept digital assets from joining Wall Street’s AI-led rally.

BTC is down about 1.4% in the last 24 hours and was trading recently under $73,000, while ether dropped 2.1% to $1,980. The broader CoinDesk 20 (CD20) index fell 2.38%.

The weakness follows a 10-session, $2.97 billion outflow streak from U.S. spot bitcoin ETFs, the longest run of withdrawals on record, which included the rapid exit of a $1.2 billion position.

The crypto market “sold off through last week without a clear catalyst,” according to a note from Laser Digital’s derivatives trading desk. “There seemed to have been a lack of demand, including Strategy announcing that they didn’t purchase any BTC.

“With STRC still trading below par and the continued lack of interest from retail buyers, BTC is expected to remain weak for the time being,” the note said.

That leaves crypto at risk of further underperformance versus equities, where enthusiasm around artificial intelligence has pushed global stock indexes to fresh highs even as oil prices climbed on stalled efforts to reopen the Strait of Hormuz. Stay alert!

Read more: For analysis of today’s activity in altcoins and derivatives, see Crypto Markets Today . For a comprehensive list of events this week, see CoinDesk’s “Crypto Week Ahead.”

What’s trending

Today’s signal

Hyperliquid’s hype (HYPE) token continues to strengthen against Solana’s sol (SOL), hitting record highs.

Still, weakening RSI momentum in the ratio between the two tokens is producing a bearish divergence on the daily chart that could signal a near-term slowdown or shallow pullback.

If it does occur, it’s unlikely to mark a structural break in HYPE’s outperformance trend because there’s no confirmation of the divergence on the weekly chart.

Cardano’s annual summit in Singapore has been scrapped after token holders failed to approve $2 million worth of funding for the event.

That’s according to the Cardano Foundation, which announced on Saturday that the event would be cancelled after a treasury proposal vote failed to pass.

It said, “As part of Cardano’s on-chain governance model, treasury-funded initiatives are subject to community vote. The community has decided not to proceed with this proposal, and we fully respect that outcome.”

“Now, we will review all current commitments and commence winding down Summit execution,” it added.

Despite this, token holders still passed a proposal from “EMURGO” for the Cardano Foundation to attend and sponsor TOKEN2049 in Singapore this October.

Read more: Charles Hoskinson’s $250M clinic to close after buying up NFTs and robots

The firm’s founder, Charles Hoskinson, has since asked the Cardano community if it would like a “MiniSummit” at TOKEN2049 and to “subsidize some of the larger projects” to fund it.

The proposal needed another 1.46% of votes

The Singapore summit funding vote required an approval threshold of 66.67% from delegated representatives who vote on behalf of Cardano (ADA) holders.

However, with only 2.76 billion ADA (worth $638 million) allocated to “yes,” it attracted 65.21% and failed to pass.

The proposal would have allocated roughly $2 million worth of ADA towards the summit and was revised from a proposal that originally planned to allocate over $3 million.

Last year, one significant ADA holder, who goes by the username “Whale,” voted “yes” for Cardano’s 2025 summit while also lambasting the foundation for increased spending.

“We’re in a place where the founding entity has not delivered much for years and is requesting obscene amounts of funds to keep the same level of non-delivery going,” wrote Whale.

Hyperliquid’s native token, HYPE, has rallied more than 30% in five days to a record high near $74, with a bullish chart breakout now pointing to a potential move above $100.

HYPE/USD daily chart. Source: TradingView

Key takeaways:

• HYPE has broken out of a bull pennant pattern, putting its measured upside target near $105.
• Hyperliquid has become the second-largest blockchain by app revenue on a 30-day rolling basis.

HYPE bull pennant hints at rally toward $105

Hyperliquid’s rally may have further room to run after HYPE broke out of a textbook bull pennant pattern.

The setup developed after HYPE’s sharp late-May rally formed the pattern’s “flagpole,” followed by a brief consolidation inside a symmetrical triangle. During this pause, the token printed lower highs and higher lows, showing tightening volatility before the next directional move.

HYPE/USD daily chart. Source: TradingView

In technical analysis, bull pennants typically resolve when the price breaks above the upper trend line. Traders then estimate the upside target by adding the flagpole’s height to the breakout point.

Over the weekend, HYPE moved above the triangle’s upper boundary on rising volume, suggesting stronger conviction behind the breakout. If the pattern plays out as intended, the price could climb toward its measured target near $105.30 by June or July, about 45% above current levels.

However, momentum is becoming stretched. HYPE’s relative strength index was above 77 on Monday, placing it in overbought territory and raising the odds of a brief consolidation or correction.

If profit-taking accelerates, HYPE could retest its 20-day exponential moving average near $58.32 in June. A decisive break below that level would weaken the bullish setup and risk invalidating the pennant breakout.

Hyperliquid futures show a strong bullish bias

Derivatives market data adds another bullish layer to HYPE’s technical breakout.

Hyperliquid’s open interest has climbed to a record $3.5 billion, up from about $1.41 billion at the beginning of the year, according to Coinglass data. The sharp rise shows that more leveraged capital is entering HYPE markets as it pushes into price discovery.

Hyperliquid open interest. Source: CoinGlass

HYPE’s open interest-weighted funding rate stood near 0.0050% every eight hours as of Monday and has remained positive through most of the latest rally.

Hyperliquid OI-weighted funding rates. Source: CoinGlass

That means long traders have been paying short traders to keep their perpetual futures positions open, a sign that leveraged demand has leaned bullish. While not extreme, the consistently positive funding rate points to a clear upside bias in HYPE’s derivatives market.

Meanwhile, short sellers have taken the bigger hit during the latest rally.

Since May 20, HYPE has seen about $126.28 million in short liquidations, compared with $68.85 million in long liquidations.

Hyperliquid total liquidation chart. Source: CoinGlass

That imbalance suggests bearish traders have been forced to close positions as the price moved higher, creating a “short squeeze.”

Further gains in HYPE could put more shorts at risk of liquidation, forcing more buybacks and potentially accelerating the move toward the $100–$105 target zone.

Hyperliquid surpasses Ethereum in monthly app revenue

HYPE fundamentals are also leaning bullish.

Hyperliquid has overtaken Ethereum to become the second-largest blockchain by app revenue on a 30-day rolling basis, generating $57.9 million, according to DefiLlama.

Top revenue-generating protocols. Source: DefiLlama

The chain routes 99% of its protocol fees to its Assistance Fund, which buys HYPE on the open market. That buyback mechanism has become a core part of the bullish investment case for the token, as higher trading activity can lead to stronger recurring demand for HYPE.

The broader backdrop for perpetual futures has also improved.

On Friday, the CFTC recognized perps as useful tools for price discovery and risk management, helping legitimize the market that sits at the center of Hyperliquid’s business model, even if the protocol is not a direct beneficiary.

HYPE has rallied roughly 25% since the CFTC update.

Related: Hyperliquid launches prediction markets for real-world events

The launch of US-listed HYPE exchange-traded funds (ETF) may also help fuel the rally.

US Spot HYPE ETF net flows. Source: SoSoValue

Since their May 12 debut, HYPE funds from Bitwise and 21Shares have attracted a combined $122.2 million in net assets, according to SoSoValue, pointing to early institutional demand for exposure to the digital token.