ETH▼$1,666.10 price could fall below $2,000 for the first time since late March as ETF outflows and weaker network activity weigh on sentiment.
The price of the second-largest cryptocurrency by market capitalization, Ethereum, is moving closer to $2,000, a level it could break below if ETF outflows, weak sentiment and softer network activity don’t improve.
Santiment, the crypto analytics platform, said in a May 22 report that Ethereum faces the danger of breaking the important level for the first time since late March because of the fact that market players have created bearish narratives about its current drop.
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The pressure occurred gradually throughout May since both the growing interest in discussing Ethereum and the decline in its value continued.
On top of that, the ratio between positive and negative statements decreased. According to Santiment, Ethereum maintained a healthier balance above 2.0 in late April, but in May it approached 1.0, meaning positive and negative comments were becoming almost even.
ETF Flows Add Pressure
Spot Ethereum exchange-traded funds (ETFs) have also contributed to the poor sentiment, with analyst noting multiple ETH ETFs have experienced steady outflows in May, including sizeable redemptions from ETFs managed by BlackRock.
Santiment notes that the market hasn’t witnessed a positive flow for Ethereum ETFs greater than $50 million for nearly three weeks. The firm wrote:
“That creates a psychological feedback loop where falling prices generate fear, fear causes outflows, and then those outflows generate even more fear. Ethereum’s bearish sentiment has increasingly reflected this cycle throughout the month.”
The Ethereum blockchain is also dealing with weaker on-chain activity as daily active addresses and network growth have cooled from stronger periods in 2024 and 2025, even though Ethereum still leads in raw development activity, the report reads.
So even though Ethereum still has deep infrastructure and developer activity, traders are yet focused on price, ETF exits and competing ecosystems. As Santiment argues, the bearishness could eventually become even useful from a contrarian view, but for now ETH is still fighting to stay above the $2,000 line.
Read more: Why Crypto Whales Are Accumulating Ethereum Again in May 2026
