From 18:45 to 19:00 (UTC) on May 29, 2026, ETH saw a sharp drop of 0.68% within 15 minutes. The price fell from 2,025.36 USDT to 2,006.15 USDT, with a swing of 0.95%. The overall market is in a correction cycle. Earlier that day, ETH had already broken below the $2,000 key support level and was barely holding above the whole-number mark.
The main driver behind this move is continued outflows of institutional capital combined with a breakdown of technical support. On May 28, ETH ETFs recorded approximately -$122 million in net outflows. In the same period, BTC ETFs saw net outflows of about -$233 million. Even more concerning, over the past nine trading days, more than a dozen Bitcoin ETFs cumulatively recorded net outflows totaling $2.8 billion, setting a historical record. Large-scale deleveraging by institutional investors directly increased selling pressure in the market. Meanwhile, on May 29, ETH officially fell below the $2,000 key technical support level. After this level was lost, it turned into a resistance zone, triggering programmatic sell orders and stop-loss orders, further amplifying downside pressure.
Second, weak technical indicators and capital rotation are creating a synchronized effect. ETH’s RSI is already in a deeply oversold area, but OBV (On-Balance Volume) has maintained a bearish pattern since mid-May, suggesting capital is leaving the market and buy-side willingness remains weak. With a broad stablecoin dominance already in place, daily TBO has generated a long-position signal, indicating funds are rotating from risk assets into stablecoins and reflecting a decline in investors’ risk appetite. The month-end effect further intensifies selling pressure, as investors tend to close positions before the monthly close to avoid uncertainty.
On the risk front, ETH has formed an effective bearish flag pattern. The downside target points to around $1,075. If the $2,000 support level confirms a conversion to resistance, ETH could further test the intra-year low of $1,823.20 set on February 6, 2026. Spot trading volume fell by 12.9% compared with the prior trading day, and liquidity contraction may amplify price volatility. In the short term, if there is no significant bullish catalyst, ETH may continue its corrective trend. Traders are advised to monitor whether the $2,000 level flips to resistance and changes in ETF fund flows.
