Ethereum falls 5.6% to $2,275 as network activity drops
Ethereum price fell 5.6% in one week, dropping to about $2,275 after a rejection at the $2,400 resistance level. Analysts warn that if Ethereum price breaks below $2,000, ETH could slide toward $1,830.
On-chain signals point to broad weakening. Nansen data shows weekly transactions down 10% to 4.79M and active wallets down 8% to 2.5M. Ethereum network fees fell 27% week-on-week, with a 47% drop in on-chain income, while DEX activity also cooled—DEX volume dropped to ~$1.64B (down 46% over three weeks). DeFi TVL fell to $124.7B, the lowest since May 2025.
Staking and liquidity flows are also shifting. The unstaking queue surged to 530,985 ETH (May 2), and more than 202,000 ETH remains pending withdrawals (estimated ~3 days). The article links the uptick to recent high-profile DeFi security incidents, including a KelpDAO exploit (~$292M loss) and losses tied to Aave withdrawals.
Price pressure appears driven by US investors. The Ethereum Coinbase Premium Index has been negative since April 27, suggesting higher US selling vs global levels. Despite four straight days of inflows into US spot ETH ETFs, the article cites a $103M outflow last Thursday and $81.6M+ outflows across global products.
Trader focus: ETH needs to defend the $2,150–$2,200 area; bears target $2,000 then $1,830. Ethereum price weakness could extend if these flows persist.
Bearish
The news is broadly bearish because it combines price weakness with consistent deterioration in Ethereum’s usage and capital flows. Ethereum price dropped 5.6% and failed at $2,400, while multiple on-chain indicators confirm reduced demand: lower transactions, fewer active wallets, sharply lower fees/on-chain income, falling DEX volume, and TVL at a new post-May 2025 low. On top of that, a surge in the unstaking queue suggests more ETH is likely to become available for selling, especially after recent DeFi hacks that increased risk aversion.
Historically, when ETH breaks key technical levels (here, the path toward $2,000) while network activity and staking dynamics weaken, rebounds tend to be weaker and shorter in the short term—market participants often wait for stabilization in metrics or clearer ETF flow reversals. The article’s mention of negative Coinbase Premium and ETH ETF outflows supports this “sell pressure persists” narrative.
In the short term, traders may lean toward downside hedges or selling rallies, watching $2,150–$2,200 and then the psychological $2,000 level. In the long term, if TVL and staking flows stabilize after security clean-ups, downside could slow; however, as long as Ethereum price remains under key moving-average zones and ETF/spot demand stays soft, volatility is likely to stay elevated.