Institutions have also departed... Ethereum Spot ETF sees 12 consecutive days of fund outflow

▲ Ethereum (ETH) ©

Ethereum (ETH) has ultimately fallen below $2,000 amid a sharp decline in on-chain activity and the shock of institutional fund outflows. In particular, with the number of active network addresses having nearly halved since February, and open interest hitting an all-time high, warnings are emerging in the market that “the possibility of further sharp declines is increasing.”

According to the investment media outlet FXStreet on May 28 (local time), the number of active addresses on the Ethereum network has decreased by approximately 50% since mid-February. The active address metric, based on a 7-day simple moving average (SMA), has fallen back to early-month levels, interpreted as a sign of both slowing on-chain activity and weakening investor sentiment. ETH dropped below $2,000 during the session, and the bearish trend continues.

Exchange holdings' flow is also increasing market instability. Ethereum exchange reserves have shown a sideways trend over the past two weeks after a sharp increase at the beginning of this month. The outlet analyzed that an increase in exchange inflows generally tends to be linked to strong selling pressure. However, while selling pressure has somewhat subsided recently, the absence of clear new buying momentum is limiting market recovery, it explained.

Institutional investor fund flows are also worsening. U.S. Ethereum spot ETFs have recorded net outflows for 12 consecutive trading days, marking the longest streak of fund outflows since March 2025. The outflow amounted to approximately $67.1 million in the last day. Nicolai Sondergaard, a research analyst at Nansen, stated, “For ETH to regain strength, Ethereum spot ETF fund flows must convert to meaningful net inflows for several consecutive days,” adding, “As of now, independent ETH demand from institutional investors has not been clearly confirmed.”

In the derivatives market, unsettling signals are simultaneously emerging. ETH open interest surpassed 16.1 million ETH, reaching an all-time high, but the price, conversely, fell below $2,000. Furthermore, funding rates remain positive, suggesting that some market participants are attempting to buy the dip or maintain long positions even in a declining market. Conversely, the taker buy/sell ratio has remained below 1 since May 8, indicating overall bearish sentiment. Over the past 24 hours, ETH liquidations amounted to approximately $236 million, with about $225 million of that being long position liquidations.

Technically, ETH continues its bearish trend, trading below its 20-day, 50-day, and 100-day exponential moving averages (EMAs). The Relative Strength Index (RSI) has dropped near 30, and the Stochastic indicator has also fallen below 10, signaling strong downward pressure. The short-term support level is set at $1,909, and if this level breaks, further declines to $1,741 and $1,524 are possible. Conversely, in case of a rebound, $2,018 and $2,107, followed by the 20-day EMA at $2,143, are cited as key resistance levels to watch for a breakthrough.

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