From 05:00 to 05:15 UTC on June 4, 2026, ETH experienced a sharp drop of 0.71% within 15 minutes, with a price range of 1,791.34–1,805.27 USDT and a 1.21% amplitude. This period is in the early stage of the Asian trading session, when market liquidity is thin and prices are more sensitive to sell pressure. In fact, ETH has been trending downward continuously since the early UTC morning, and around 05:15 it already hit the day’s low of $1,717.28; the overall decline widened to -5.28%. The -0.71% drop in the 05:00–05:15 window analyzed in this report represents a phase within the broader intraday downtrend.
The main driver behind this abnormal move is the continued net outflow of ETF funds. The US spot ETH ETF has recorded net redemptions for 15 consecutive trading days, setting the longest outflow streak since the ETF’s launch. In May 2026, the total outflow for the entire month reached $402 million, the third-largest month of net outflows in history. Continuous selling by institutional investors at the ETF level was concentrated in the early Asian session, creating direct sell pressure.
Meanwhile, the macro environment further amplified the downside. First, the crypto market is in extreme fear overall: the Fear Index fell to 11, and the RSI dropped to 10.00, the second-lowest level since 2025, indicating strong risk-averse sentiment. Second, ETH’s technical structure is under pressure: an inverted cup-and-bowl bearish pattern continues to form, and the $1,964 key support level faces testing risk; stop-loss activity by technical traders further increases volatility. Third, the US Dollar Index remains strong; traditional markets see a rebound in risk appetite, diverting capital away from crypto. On-chain data shows that mega whales and long-term holders have continued to make net purchases during the selloff process, indicating they are not the main source of this selling; the sell pressure mainly comes from leveraged traders forced liquidations and stop-losses by short-term speculators.
Current volatility risk is significant. Key indicators to watch include the effectiveness of the $1,964 support level, the direction of ETF fund flows, and changes in the Fear Index. If ETH closes below $1,964 for two consecutive days, it could confirm a breakdown of the pattern, with downside room potentially targeting $1,545. Investors should remain alert to the amplifying effect during periods of thin liquidity, and watch on-chain fund flow direction as well as changes in macro news.
