Ethereum ETFs See $430 Million Outflow as ETH Drops Below $2,200 Support
May 21, 2026
Ethereum (CRYTPO: ETH) has experienced its fourth consecutive week of losses, dropping to $2,128, breaching the $2,200 support level that had remained consistent throughout April. During this period, U.S. spot Ethereum ETFs have witnessed a significant outflow of $431.86 million over eight consecutive trading days, essentially erasing most of the inflows from the previous month.
The recent downtrend in Ethereum’s price and ETF funds can be attributed to a combination of macroeconomic factors. The key concern now is whether Ethereum can hold the $2,100 support level or if further decline is imminent.
The eight-day streak of outflows from U.S. spot Ethereum ETFs started on May 11 and continued until May 20, resulting in net losses amounting to $431.86 million. The largest outflow of $130.62 million occurred on May 12 alone. Notably, the funds that were leading in terms of inflows when Ethereum ETFs were first introduced in 2024 are now witnessing significant outflows. This shift suggests a decline in institutional confidence.
Contrary to the recent outflows, Ethereum ETFs had a successful month in April, accumulating $355.98 million in inflows, marking the end of a five-month outflow streak that saw a total of nearly $2.8 billion exit the funds. However, the positive momentum was short-lived, with May already reeling from a loss of $260.18 million, and the outflow streak persisting without signs of abating.
Ethereum’s price has exhibited greater volatility compared to Bitcoin, with a 6% decline this week, contrasting with Bitcoin’s 2.3% drop. One of the reasons for Ethereum’s steeper decline is the absence of a structural buyer like Bitcoin’s Strategy, which has a significant stake in BTC and continues to accumulate more coins.
Furthermore, Ethereum’s price movements have closely mimicked those of tech stocks, with a correlation of 0.78 to the Nasdaq 100. Consequently, when the tech sector experiences a downturn due to rising yields, Ethereum is also impacted. In contrast, Bitcoin often behaves akin to gold during market fluctuations.
Recent events, such as a warning to Iran by former President Trump, triggered a cascade of sell-offs in the crypto markets, causing both Bitcoin and Ethereum to plummet. The abrupt decline in Ethereum’s price was exacerbated by leveraged positions being liquidated, amplifying the selling pressure.
Bitmine, a leading Ethereum treasury company, significantly reduced its weekly ETH purchases by 74% as the ETF outflows intensified. While Bitmine had been accumulating ETH consistently, the recent market conditions prompted an increase in purchases to capitalize on the price dip. However, despite Bitmine’s efforts, the broader market sentiment seems bearish, with Ethereum struggling to maintain the $2,100 support level.
In conclusion, Ethereum faces a critical juncture as it hovers just above the $2,100 support level. The ability to sustain this level will determine whether Ethereum continues its downward trajectory towards $1,900 or stages a recovery.
