Ether (ETH) extended a downbeat spell last week after hitting resistance near $2,400, with the price sliding to roughly $2,100 on Monday. Market observers described the move as a sign that sellers have regained control, marking a shift in near-term momentum for the largest smart contract platform by market capitalization.

The wave of selling came as liquidity pressure mounted on major venues and investment products, reinforcing a narrative of waning demand. Binance’s exchange data showed that taker sell volume surged as ETH breached crucial downside levels, a signal, according to analysts, of forced risk-off positioning among active traders. In parallel, fund flows underscored a broader withdrawal of institutional interest in Ethereum-related exposure.

According to SoSoValue, US-based spot Ethereum ETFs posted net outflows for five consecutive days, totaling $255 million. Globally, Ethereum-focused investment products rang up about $249 million in outflows for the week ending May 15, the largest weekly figure since early February, according to data tracked by CoinShares. These outflows suggest the market is experiencing a pause or reversal in institutional demand, at least in the near term.

Key takeaways

• Ether drops roughly 12% after rejection at $2,400, with price extending lower toward $2,100 as bears reassert control.
• Binance taker sell volume spikes above $1.1 billion during the downside move, indicating aggressive selling pressure from traders on futures platforms.
• ETF and fund outflows imply waning institutional demand for Ethereum exposure in the short run, potentially constraining upside momentum.

Trading dynamics amid thinning demand

Price action around ETH has reflected a confluence of selling pressure and shifting investor positioning. Data from Binance shows a surge in taker sell volume as ETH moved below the $2,100 level, a pattern that traders sometimes interpret as forced de-risking or short-term bearish pressure from active market participants. CryptoQuant analyst Amr Taha captured the sentiment, noting that while the spikes do not automatically confirm a reversal into a deeper downtrend, they do indicate buyers were unable to absorb selling pressure during the move.

Analysts have increasingly linked price action to a widening macro and sectoral dynamics that have weighed on Ethereum demand. A related thread of analysis has tied ETH selling pressure to external catalysts, with coverage noting that surging oil prices have been identified as a driver of selling pressure in Ether by market commentator Tom Lee. The observation points to a broader risk-off environment where macro shifts can translate into crypto selling, particularly for assets with the most liquidity and sensitivity to market sentiment.

The withdrawal of liquidity from Ethereum-focused investment products aligns with the price action. SoSoValue’s data shows a five-day streak of net outflows from US spot ETH exposure totaling $255 million, a clear sign that institutions are rebalancing away from long ETH bets in the near term. Whale Factor, commenting on the flow trajectory, described the pattern as “heavy sell-side distribution” that has kept price pressure in place for now.

CoinShares’ weekly fund flow report further corroborates the trend, noting that global Ethereum investment products registered about $249 million in outflows for the week ending May 15, the largest weekly number since late January. Taken together, these outflows paint a picture of a market where institutional demand has cooled, at least temporarily, even as spot demand and retail interest remain more tentative.

Where is the support, and what comes next?

From a technical standpoint, investors are watching a cluster of roughly 3.85 million ETH that sits at a cost basis around $2,000–$2,100, according to Glassnode’s cost-basis distribution data. The concentration suggests a sizable cohort of holders could add if prices approach break-even, potentially offering a floor that might limit further downside in the near term.

Analysts remain divided on the vulnerability of ETH to a deeper retreat. Some traders point to a rising wedge pattern on daily charts, which could set the stage for a move toward the next major support around $1,700 if current supports fail to hold. In contrast, others argue that a decisive hold above $2,000 could slow the decline, with a potential bounce narrowly above that level contingent on continued demand and favorable liquidity conditions.

Strategists offered a spectrum of medium-term views. A well-known trader noted that Ethereum breached the $2,100 area after failing to sustain the $2,150 support, suggesting that a defense around the $2,050–$2,070 zone could provide a meaningful bounce if demand returns. Another analyst framed the situation as a test of buyers’ resolve near the lower end of the recent range, warning that a sustained break below the region could open the door to further softening into lower support bands.

Beyond the price action, the narrative around catalysts for a potential ETH rally remains anchored to a mix of macro conditions and on-chain developments. Sharplink’s CEO recently highlighted three catalysts that could help Ethereum reach new highs: the CLARITY Act’s progress in the United States, a broader return of market-wide risk appetite, and the growth of real-world asset tokenization on Ethereum. While these drivers are not immediate guarantees, they represent the structural tailwinds that could shift sentiment back toward Ethereum if liquidity and risk sentiment improve.

For now, traders are inclined to monitor the $2,000 level closely. A firm hold above this threshold could deter further downside and set the stage for a measured recovery, while a break below could expose traders to a test of the next support pockets identified by technical analysts and cost-basis data alike. The balance of on-chain activity, ETF and fund flows, and macro risk appetite will continue to shape the near-term trajectory.

In a related context, market observers have flagged that external factors, such as shifts in oil prices and broader risk sentiment, have historically fed into Ethereum’s price behavior. The interconnectedness of macro trends and on-chain dynamics underscores the importance of watching both liquidity flows and technical levels as the market digests renewed selling pressure and any potential rebound catalysts.

As the week unfolds, traders and investors will be watching three key variables: whether ETH can sustain a bid above $2,000, how ETF and institutional flows trend in the coming days, and whether demand from key market participants returns to supported levels to re-anchor prices above crucial supports.

The immediate question remains whether the current price action marks a temporary pause in a broader downtrend or the start of a longer retracement that could push ETH toward lower basins. Market participants will be closely analyzing liquidity conditions, the pace of outflows or inflows in Ethereum-related vehicles, and the evolving macro backdrop to gauge the durability of any short-term bounce.

Readers should stay tuned to updates on ETF flows, on-chain cost-basis shifts, and technical patterns that could prove decisive for ETH’s near-term path. The coming days may reveal whether the market finds equilibrium near $2,000 or if renewed selling pressure takes the price down to the next set of support levels.

What remains uncertain is how quickly institutional sentiment can reassert itself and whether macro risks ease enough to restore appetite for Ethereum exposure. Market participants will be watching closely to determine if the present pullback is a temporary pause in a longer-term recharge or a precursor to a deeper test of support zones.

Cryptocurrency investment products posted heavy outflows last week as investors reduced risk amid inflation fears and uncertainty over a lasting ceasefire between the United States and Iran.

According to CoinShares’ latest weekly report, digital asset exchange-traded products (ETPs) recorded $1.07 billion in net outflows, ending a six-week streak of inflows. It marked the third-largest weekly outflow this year.

Bitcoin (BTC) investment products accounted for the bulk of the withdrawals, with $982 million in outflows. Ether (ETH) products lost $249 million, their largest outflow since the week ending Jan. 30.

Altcoin funds bucked the broader trend. XRP (XRP) investment products drew in $67.5 million, while Solana (SOL) funds added inflows of $55.1 million.

Despite last week’s outflows, both Bitcoin and Ether ETPs remain firmly positive on a year-to-date basis. Source: CoinShares

Most of the outflows originated in the United States, where investors pulled net $1.14 billion from funds. In contrast, several European markets, including Switzerland, Germany and the Netherlands, posted modest inflows.

The pullback in crypto funds coincided with a broader retreat in risk assets, with the S&P 500 index falling from all-time highs late last week. Investors remained focused on disruptions around the Strait of Hormuz, a critical shipping route for global oil supplies, which have pushed energy prices higher and contributed to a renewed rise in US inflation to its highest level in more than three years.

Related: Crypto’s CLARITY Act faces partisan fight over ethics on Senate floor

CLARITY Act remains a source of hope for crypto industry

CoinShares head of research James Butterfill said select altcoins benefited from improving regulatory sentiment in the United States following progress on the CLARITY Act.

The legislation, which would establish a clearer framework for regulating digital assets in the US, advanced out of the Senate Banking Committee last week with bipartisan support.

Industry advocates say the bill could reduce regulatory uncertainty and provide a more predictable legal environment, encouraging crypto companies and investment to remain in the US.

Crypto Council for Innovation CEO Ji Hun Kim said “the momentum and progress are both strong” as the legislation moves through Congress.

Source: Faryar Shirzad

However, several Senate Democrats have pushed for stronger ethics provisions, particularly concerning elected officials’ financial ties to the crypto industry.

Republican Senator Thom Tillis said “more work remains in the weeks ahead to make this legislation even better.”

Related: Ethics remain sticking point as crypto market structure bill goes to markup

Ether (ETH) dropped sharply after rejection at $2,400 last week, dropping as low as $2,100 on Monday, indicating that bears are back “in control,” according to new analysis.

Key takeaways:

• Ether drops 12% after rejection at $2,400 as bears regain control.
• Binance sell pressure and ETF outflows signal weak ETH demand.
• Analysts warn ETH/USD could fall toward $1,700 if support at $2,000 breaks.

ETH bears selling aggressively

Data from TradingView shows ETH price trading at $2,100, down 12% below its local high of $2,420 reached on May 6. On Sunday, ETH/USD hit $2,090 on Bitstamp, its lowest level since April 17.

ETH/USD one-hour chart. Source: Cointelegraph/TradingView

The bearish sentiment could be returning to Ether’s market as a key metric from Binance, the largest crypto exchange by trading volume, shows that sellers are starting to dominate the platform’s volumes.

Related: Surging oil prices have been driving Ether selling pressure: Tom Lee

The Binance taker buy volume, which measures the total dollar amount of aggressive sell orders placed by traders on Binance futures, climbed above $1.1 billion within an hour on Sunday as ETH moved toward levels below $2,100. 

When this metric spikes during price declines, it often points to forced de-risking or strong short-term bearish pressure from active market participants.

Ether saw “large aggressive sell-volume spikes on Binance while testing important downside levels,” CryptoQuant analyst Amr Taha said in a QuickTake note on Monday, adding:

“This does not necessarily confirm the start of a deeper downtrend. However, it shows that sellers were clearly in control during the move.”

ETH taker sell volume on Binance. Source: CryptoQuant

Increasing outflows from ETH investment products added to the sell-side pressure.

Data from SoSoValue shows US-based spot Ethereum ETFs had net outflows for five consecutive days, totalling $255 million. 

This suggests that “institutional momentum has hit a localized wall for Ethereum,” analyst Whale Factor said in a Sunday post, adding:

“This heavy sell-side distribution is keeping a tight lid on prices for now. ”

Spot ETH ETF flows chart. Source: SoSoValue

Global Ethereum investment products also saw $249 million in outflows during the week ending May 15, the largest since Jan. 30, data from CoinShares shows.  

3.5 million ETH cluster at $2,000 could abate a sell-off

According to Ether’s cost-basis distribution data, investors hold approximately 3.85 million ETH at an average cost basis of $2,000-$2,100, creating a potential support zone. This concentration suggests many investors may add to their positions at break-even, potentially abating another ETH price breakdown.

Ethereum cost basis distribution chart. Source: Glassnode

As Cointelegraph reported, the ETH price could potentially drop toward $1,700 after validating a rising wedge pattern on the daily time frame. Traders, however, say the bearish momentum could be stalled if ETH/USD holds above $2,000.

“$ETH dropped below $2,100 as it failed to hold the $2,150 support zone,” said crypto analyst Ted Pillows in an X post on Tuesday, adding:

“The next key support for Ethereum is the $2,050-$2,070 level, which could provide some bounce back.”

ETH/USD daily chart. Source: X/Ted Pillows

Technical analyst Donald Dean said ETH bulls need to defend the “lower volume shelf support near $2,100” to avoid a move below a rising channel on the daily chart.

ETH/USD daily chart. Source: X/Donald Dean

Fellow analyst Cryptorphic said if the ETH/USD pair fails to “hold this area and consolidates below it, we could see a continuation toward lower support levels,” adding:

“The recent breakdown below the local support area shows that buyers are getting weaker in the short term.”

Meanwhile, Sharplink CEO pointed out three catalysts that the ETH price needs to surge higher, including the passage of the CLARITY Act in the US, a return of marketwide risk appetite, and growth in real-world asset tokenization on Ethereum.