{"id":603372,"date":"2026-05-29T19:00:01","date_gmt":"2026-05-29T23:00:01","guid":{"rendered":"https:\/\/ambcrypto.com\/?p=603372"},"modified":"2026-05-29T08:51:44","modified_gmt":"2026-05-29T12:51:44","slug":"ethereums-deeper-problem-its-not-just-macro-risk-weighing-eth-down","status":"publish","type":"post","link":"https:\/\/ambcrypto.com\/ethereums-deeper-problem-its-not-just-macro-risk-weighing-eth-down\/","title":{"rendered":"Ethereum&#8217;s &#8216;deeper problem&#8217; &#8211; It&#8217;s not just macro risk weighing ETH down"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">On Thursday, Ethereum&#8217;s price briefly dropped below $2000 for the first time since late March. In doing so, the king altcoin effectively erased all its Q2 gains. At the time of writing, it was down 19% from its April peak of nearly $2.5K. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">This week alone, the altcoin has shed 6% of its value.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Should it lose the Q2 support zone of $2K, short sellers could push it lower to $1.8K\u2014the range low of the 2026 sideways structure.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The pullback mirrored a broader macro-driven correction that also dragged Bitcoin lower. However, according to Nansen, ETH\u2019s weakness showed a \u201cdeeper problem.\u201d\u00a0<\/span><\/p>\n<figure id=\"attachment_603374\" aria-describedby=\"caption-attachment-603374\" style=\"width: 1793px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/ETHUSDT_2026-05-29_11-56-54.png\"><img decoding=\"async\" class=\"wp-image-603374 size-full\" src=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/ETHUSDT_2026-05-29_11-56-54.png\" alt=\"Ethereum ETH\" width=\"1793\" height=\"1089\" srcset=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/ETHUSDT_2026-05-29_11-56-54.png 1793w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/ETHUSDT_2026-05-29_11-56-54-300x182.png 300w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/ETHUSDT_2026-05-29_11-56-54-1024x622.png 1024w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/ETHUSDT_2026-05-29_11-56-54-768x466.png 768w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/ETHUSDT_2026-05-29_11-56-54-1536x933.png 1536w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/ETHUSDT_2026-05-29_11-56-54-1200x729.png 1200w\" sizes=\"(max-width: 1793px) 100vw, 1793px\" \/><\/a><figcaption id=\"caption-attachment-603374\" class=\"wp-caption-text\"><span style=\"font-weight: 400;\">Source: ETH\/USDT, TradingView\u00a0<\/span><\/figcaption><\/figure>\n<h2><strong>Negative ETH catalysts: ETF outflows, low network activity<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">In an email statement, Nansen Research analyst Nicolai Sondergaard told AMBCrypto,\u00a0<\/span><\/p>\n<blockquote><p><span style=\"font-weight: 400;\">Gas fees are sitting below 2 gwei, near cycle lows, which signals that network demand is soft. Fewer people are transacting, fewer contracts are being called, and the burn mechanism that once made ETH structurally deflationary has slowed considerably.<\/span><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">The \u201cstore value\u201d proposition is not playing out for the altcoin for now. In fact, Grayscale <\/span><a href=\"https:\/\/ambcrypto.com\/positive-for-eth-price-grayscale-backs-ethereum-staking-reward-cap\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">proposed capping<\/span><\/a><span style=\"font-weight: 400;\"> staking rewards to cap the resulting inflation that\u2019s diluting <a href=\"https:\/\/ambcrypto.com\/predictions\/ethereum-price-prediction\/\" target=\"_blank\" rel=\"noopener\">ETH\u2019s value<\/a>.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, part of the problem is structural. Now Layer 2s (L2s) handle most of the transactions and capture revenue away from the mainnet, added Sondergaard.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For the analyst, the low burn mechanism has turned ETH inflationary, which \u201cremoves one of the key narratives that drove conviction in prior cycles.\u201d\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">On the institutional demand front, ETH has lagged behind BTC in 2026. Notably, the ETH\/BTC ratio has dropped to a year low. The analyst highlighted,\u00a0<\/span><\/p>\n<blockquote><p><span style=\"font-weight: 400;\">The ETH\/BTC ratio has compressed to 0.027, which is the more telling number. It reflects a cycle dynamic that has been stubborn throughout 2026: Bitcoin continues to capture institutional attention, and ETH has not yet pulled the same weight.<\/span><\/p><\/blockquote>\n<figure id=\"attachment_603378\" aria-describedby=\"caption-attachment-603378\" style=\"width: 1793px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/ETHBTC_2026-05-29_11-49-50.png\"><img decoding=\"async\" class=\"wp-image-603378 size-full\" src=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/ETHBTC_2026-05-29_11-49-50.png\" alt=\"Ethereum ETH\" width=\"1793\" height=\"1090\" srcset=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/ETHBTC_2026-05-29_11-49-50.png 1793w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/ETHBTC_2026-05-29_11-49-50-300x182.png 300w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/ETHBTC_2026-05-29_11-49-50-1024x623.png 1024w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/ETHBTC_2026-05-29_11-49-50-768x467.png 768w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/ETHBTC_2026-05-29_11-49-50-1536x934.png 1536w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/ETHBTC_2026-05-29_11-49-50-1200x730.png 1200w\" sizes=\"(max-width: 1793px) 100vw, 1793px\" \/><\/a><figcaption id=\"caption-attachment-603378\" class=\"wp-caption-text\"><span style=\"font-weight: 400;\">Source: ETH\/BTC ratio, TradingView<\/span><\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">Since 11 May, U.S. Spot ETH ETFs have seen consecutive daily outflows. The monthly outflows have hit $522M too\u2014the highest since last December.\u00a0<\/span><\/p>\n<h2><strong>What could trigger ETH&#8217;s rebound?<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">For ETH to recover strongly, it needs renewed Spot ETH ETF inflows and network demand. Nansen\u2019s Sondergaard concluded,\u00a0<\/span><\/p>\n<blockquote><p><span style=\"font-weight: 400;\">The macro environment also needs to stop punishing risk appetite. ETH does not need all of these at once, but it needs at least two. Right now, it has none of them.<\/span><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">Even so, <\/span><a href=\"https:\/\/ambcrypto.com\/ethereum-broke-key-support-retail-says-buy-the-dip-but-whales-say\/\"><span style=\"font-weight: 400;\">whales have piled<\/span><\/a> on<span style=\"font-weight: 400;\"> to bid on the recent dip. In fact, wallets with over 100K ETH now control 22% of the supply, or 17.4 million ETH, marking a 10-week high.\u00a0<\/span><\/p>\n<figure id=\"attachment_603380\" aria-describedby=\"caption-attachment-603380\" style=\"width: 2560px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/ETH-santiment-scaled.jpg\"><img decoding=\"async\" class=\"wp-image-603380 size-full\" src=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/ETH-santiment-scaled.jpg\" alt=\"Ethereum ETH\" width=\"2560\" height=\"1437\" srcset=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/ETH-santiment-scaled.jpg 2560w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/ETH-santiment-300x168.jpg 300w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/ETH-santiment-1024x575.jpg 1024w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/ETH-santiment-768x431.jpg 768w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/ETH-santiment-1536x862.jpg 1536w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/ETH-santiment-2048x1150.jpg 2048w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/ETH-santiment-1280x720.jpg 1280w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/ETH-santiment-960x540.jpg 960w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/ETH-santiment-640x360.jpg 640w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/ETH-santiment-320x180.jpg 320w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/ETH-santiment-160x90.jpg 160w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/ETH-santiment-1200x674.jpg 1200w\" sizes=\"(max-width: 2560px) 100vw, 2560px\" \/><\/a><figcaption id=\"caption-attachment-603380\" class=\"wp-caption-text\">Source: Santiment<\/figcaption><\/figure>\n<p>However, the whale demand, likely driven by major players like <a href=\"https:\/\/ambcrypto.com\/what-a-125-mln-ethereum-buy-means-for-bitmines-russell-3000-dreams\/\" target=\"_blank\" rel=\"noopener\">Bitmine<\/a>, was not enough to taper off the on-chain capital outflows. Notably, ETH\u2019s capital outflow has deepened since last October, as tracked by the Realized Cap.<\/p>\n<p>In fact, in 2026, the altcoin has seen $15B in capital outflows as Realized Cap dropped from $310B to $295B.<\/p>\n<p>It meant that the aggregate demand for ETH was still negative. This further reinforced Nansen\u2019s Sondergaard outlook.<\/p>\n<figure id=\"attachment_603458\" aria-describedby=\"caption-attachment-603458\" style=\"width: 2560px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/glassnode-studio_eth-realized-cap-ethereum-eth-scaled.png\"><img decoding=\"async\" class=\"size-full wp-image-603458\" src=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/glassnode-studio_eth-realized-cap-ethereum-eth-scaled.png\" alt=\"Ethereum ETH\" width=\"2560\" height=\"1440\" srcset=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/glassnode-studio_eth-realized-cap-ethereum-eth-scaled.png 2560w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/glassnode-studio_eth-realized-cap-ethereum-eth-300x169.png 300w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/glassnode-studio_eth-realized-cap-ethereum-eth-1024x576.png 1024w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/glassnode-studio_eth-realized-cap-ethereum-eth-768x432.png 768w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/glassnode-studio_eth-realized-cap-ethereum-eth-1536x864.png 1536w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/glassnode-studio_eth-realized-cap-ethereum-eth-2048x1152.png 2048w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/glassnode-studio_eth-realized-cap-ethereum-eth-1600x900.png 1600w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/glassnode-studio_eth-realized-cap-ethereum-eth-1280x720.png 1280w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/glassnode-studio_eth-realized-cap-ethereum-eth-960x540.png 960w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/glassnode-studio_eth-realized-cap-ethereum-eth-640x360.png 640w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/glassnode-studio_eth-realized-cap-ethereum-eth-320x180.png 320w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/glassnode-studio_eth-realized-cap-ethereum-eth-160x90.png 160w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/glassnode-studio_eth-realized-cap-ethereum-eth-1200x675.png 1200w\" sizes=\"(max-width: 2560px) 100vw, 2560px\" \/><\/a><figcaption id=\"caption-attachment-603458\" class=\"wp-caption-text\">Source: Glassnode<\/figcaption><\/figure>\n<h2>Will the ETH price retest $1.8K?<\/h2>\n<p>If the weak demand and outflows extend, then ETH\u2019s price may fall to $1.8K. Interestingly, the MVRV Pricing Bands also implied such a projection.<\/p>\n<p>After early 2026 price rejection at Realized Price (1.0 RP, green) at $2.3K, ETH could likely retest the next support band at $1.8K (blue). In fact, during the 2022 crypto winter, ETH only marked a true bottom after decisively climbing above the lower bands of the metric.<\/p>\n<figure id=\"attachment_603459\" aria-describedby=\"caption-attachment-603459\" style=\"width: 2560px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/glassnode-studio_eth-mvrv-pricing-bands-scaled.png\"><img decoding=\"async\" class=\"size-full wp-image-603459\" src=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/glassnode-studio_eth-mvrv-pricing-bands-scaled.png\" alt=\"Ethereum ETH\" width=\"2560\" height=\"1440\" srcset=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/glassnode-studio_eth-mvrv-pricing-bands-scaled.png 2560w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/glassnode-studio_eth-mvrv-pricing-bands-300x169.png 300w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/glassnode-studio_eth-mvrv-pricing-bands-1024x576.png 1024w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/glassnode-studio_eth-mvrv-pricing-bands-768x432.png 768w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/glassnode-studio_eth-mvrv-pricing-bands-1536x864.png 1536w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/glassnode-studio_eth-mvrv-pricing-bands-2048x1152.png 2048w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/glassnode-studio_eth-mvrv-pricing-bands-1600x900.png 1600w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/glassnode-studio_eth-mvrv-pricing-bands-1280x720.png 1280w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/glassnode-studio_eth-mvrv-pricing-bands-960x540.png 960w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/glassnode-studio_eth-mvrv-pricing-bands-640x360.png 640w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/glassnode-studio_eth-mvrv-pricing-bands-320x180.png 320w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/glassnode-studio_eth-mvrv-pricing-bands-160x90.png 160w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/05\/glassnode-studio_eth-mvrv-pricing-bands-1200x675.png 1200w\" sizes=\"(max-width: 2560px) 100vw, 2560px\" \/><\/a><figcaption id=\"caption-attachment-603459\" class=\"wp-caption-text\">Source: Glassnode<\/figcaption><\/figure>\n<p>Overall, the ETH price could slip lower to $1.8K in the medium term if the weak institutional demand and muted network activity continue in June.<\/p>\n<hr \/>\n<h2><strong>Final Summary<\/strong><\/h2>\n<ul>\n<li style=\"font-weight: 400;\"><em><span style=\"font-weight: 400;\">According to Nansen, ETH currently has \u2018none\u2019 of the catalysts that fueled its rally in the past.\u00a0<\/span><\/em><\/li>\n<li style=\"font-weight: 400;\"><em><span style=\"font-weight: 400;\">Whales with +100K ETH are aggressively buying the Q2 dip, increasing their aggregate holdings to 17.4M coins.\u00a0\u00a0<\/span><\/em><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Nansen believes that ETH&#8217;s weakness goes beyond short-term macro pressure, but there&#8217;s more to the story.<\/p>\n","protected":false},"author":79,"featured_media":603453,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"footnotes":""},"categories":[4108,32,66,4,20],"tags":[6427],"class_list":["post-603372","post","type-post","status-publish","format-standard","has-post-thumbnail","category-commentary","category-ethereum-news","category-new-news","category-social","category-trading-view","tag-ambcrypto"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Ethereum&#039;s &#039;deeper problem&#039; 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