Ethereum Falls 2.4% as Crypto Rally Stalls, May 29

Ethereum fell 2.4% to $2,008.40 on May 29 as the broader crypto market retreated on macroeconomic headwinds. Bitcoin dropped 16% year-to-date and Solana fell 34% YTD as rising bond yields and expectations of higher interest rates weighed on demand. Crypto ETF outflows totaled $1.07 billion in the past week, ending a six-week streak of inflows.

Market Pullback Driven by Rate Expectations

Bitcoin traded at $73,000 on May 28, down from a May peak of over $81,000. The cryptocurrency has lost 16% since the start of 2026 and 42% from its all-time high of nearly $126,000 in October 2025. Ethereum and Solana saw even steeper declines. Rising bond yields and expectations of higher interest rates made interest-free assets less attractive to investors seeking yield elsewhere.

Massive Outflows Signal Investor Retreat

Crypto ETF outflows totaled $1.07 billion in the week ending May 28, ending a six-week streak of inflows. Outflows hit major U.S.-approved Bitcoin spot ETFs from BlackRock, Fidelity, and Grayscale, as well as local ETNs. Risk aversion spread globally, with nearly every region seeing outflows. The shift reflects investor concerns about macroeconomic conditions rather than crypto fundamentals.

Ethereum Network Activity Remains Strong

Despite price weakness, Ethereum processed 200.4 million transactions in Q1 2026, the first time crossing 200 million in a single quarter. This represented a 43% increase over Q4 2025’s 145 million transactions. The sustained activity reflects utility-driven demand from stablecoin settlement, decentralized applications, and Layer 2 ecosystem growth, not speculative froth.

Meyka Forecast Points to Recovery Potential

Meyka rates ETHUSD a C+ with a 12-month price target of $2,894.13, implying 44% upside from current levels. The RSI at 33.21 signals oversold conditions. With Meyka’s forecast and strong network fundamentals, the data suggests limited downside risk despite near-term macro headwinds.

Final Thoughts

Ethereum’s 2.4% drop reflects macro pressure, not network weakness. Strong Q1 transaction growth and Meyka’s 44% upside target suggest the selloff may offer entry points for long-term holders.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.