Ethereum has endured a steep wave of selling pressure, tumbling by more than 5.6 percent in the past week and sinking to $2,275. This decline began after ETH was rejected at the crucial $2,400 resistance level, setting off a broader retreat that is now echoed by a range of on-chain metrics. These indicators suggest ETH could soon slip below the psychologically important $2,000 mark.
Network activity and user transactions dwindle
Recent data reveals a pronounced drop in transaction volumes and user engagement on the Ethereum network. According to blockchain analytics provider Nansen, the weekly average number of transactions has slid by 10 percent to 4.79 million. Meanwhile, the count of active wallets has dropped by 8 percent in the same period, now standing at 2.5 million.
The decline in network usage is most sharply seen in transaction fees. Over the past week, the total fees paid on Ethereum plunged by 27 percent, reflecting both decreased user activity and a staggering 47 percent drop in on-chain income.
A similar slowdown occurred in decentralized exchanges (DEXs). Data from DefiLlama shows DEX trading volume fell to $1.64 billion as of May 8, down 46 percent over the last three weeks. This illustrates a general weakening in ecosystem utilization.
Reflecting the contraction in the network, DeFi protocols on Ethereum also saw a decline in total value locked (TVL), falling to $124.7 billion. This level marks the lowest point since May 2025, highlighting mounting concerns among DeFi participants.
Staking trends and liquidity movements
There have been significant shifts in the amount of ETH being staked on the network. The unstaking queue, which tracks ETH waiting to be withdrawn, grew by more than 72,000 percent in two weeks, reaching 530,985 ETH on May 2. As of Friday, over 202,000 ETH are still pending withdrawal, with an estimated wait time of around three days.
This uptick is partly driven by recent large-scale DeFi hacks and cybersecurity breaches. April 2026 saw repeated attacks resulting in record losses of $625 million. Notably, the KelpDAO exploit led to a $292 million loss, while fund withdrawals from Aave surpassed $15 billion. These events pushed risk-averse investors to reclaim their ETH from DeFi platforms.
Although these security events triggered a loss of confidence among users and caused significant liquidity outflows, an impressive 3.6 million ETH remains queued for staking and a total of 38.6 million ETH is still locked. This suggests that, despite recent shocks, many users continue to commit to long-term positions on the network.
Selling pressure and technical outlook
The bulk of the recent selling pressure originates from US-based investors. The Ethereum Coinbase Premium Index, which tracks the price differential between Coinbase and Binance, has turned negative since April 27. This indicates US selling has been consistently higher than the global average, adding downward momentum to ETH’s price.
As long as the Coinbase Premium remains negative, analysts believe that selling pressure from the US will likely keep ETH prices under pressure, potentially accelerating the downward move.
Despite four consecutive days of inflows into US spot Ethereum ETFs, a major outflow of $103 million occurred last Thursday. This marks the largest daily fund exit since mid-March. Globally, Ethereum investment products saw outflows exceeding $81.6 million last week.
Trading activity for ETH on Binance has also declined. There has been a notable uptick in aggressive sell orders in spot markets, while technical charts indicate ETH/USD broke below key support levels. Bulls are currently attempting to defend the moving average zone between $2,150 and $2,200.
If ETH drops below the psychological threshold of $2,000, analysts warn it could fall toward the $1,830 range. Previous reports have also highlighted the risk of ETH descending to the $1,750–$1,850 band if it fails to reclaim resistance at $2,300 in the near term.
