ETH drops 1.06% in 15 minutes: Insufficient spot buying combined with leveraged funds leading to short-term selling pressure

Between 07:00 and 07:15 (UTC) on May 16, 2026, ETH experienced a -1.06% decline, with a price range of 2182.87 to 2215.74 USDT, and an amplitude of 1.48%, showing a clear short-term price anomaly, and market attention significantly increased.

The core driver of this anomaly was weak spot market buying pressure. ETF net inflows remained stable, with no large-scale new capital inflows, and structural supply tightness failed to immediately translate into price support. Data shows that ETH balances on exchanges dropped to 8.7% of the total supply, a new low, down 43% from July 2025, but the reduced circulating supply did not lead to corresponding spot buying interest.

Meanwhile, market structural issues intensified volatility. First, the derivatives market dominance is evident, with ETH futures trading volume over six times that of spot, and the spot/futures trading ratio dropping to its lowest since 2023, making prices highly sensitive to large liquidations under leverage. Second, on-chain large funds showed a clear net outflow, with net outflows of over $10 million, totaling -44,021 ETH; some large holders or institutions chose to reduce holdings during volatile phases, directly increasing short-term selling pressure. Additionally, although macro and regulatory factors have not changed drastically, the SEC chair recently emphasized advancing regulations for crypto assets, leading to a generally lower risk appetite in the market. Spot buying failed to absorb the selling pressure in time, amplifying price fluctuations.

Currently, attention should be paid to leverage structure risks and spot liquidity risks. If market sentiment further weakens, forced liquidations of leveraged positions could exacerbate volatility; when spot buying is insufficient, any large capital outflows could trigger unexpected price swings. Future monitoring should focus on key indicators such as changes in the spot/futures trading ratio, ETH balances on exchanges, large fund flows, and ETF net inflows.