ETH plunges 1.24% in 15 minutes: institutional selling and unusual moves in historical ICO tokens coincide, triggering a short-term panic sell-off and stampede-style drop

Between May 26, 2026, 14:30 and 14:45 (UTC), ETH prices plummeted by 1.24%, with a price range of 2105.92 to 2138.8 USDT, a volatility of 1.54%. Previously, the Polymarket prediction market showed traders expecting a 79% positive inflow of ETH ETF funds on that day, which was a clear divergence from the actual trend, intensifying market volatility.

The main driver of this abnormal movement was concentrated institutional selling. Harvard University's endowment fund liquidated its entire $87 million ETH ETF holdings in the first quarter of 2026. As a benchmark for traditional institutional investments, this divestment triggered a market demonstration effect. Meanwhile, market maker Wintermute reduced its ETH holdings by about 40% over three weeks, decreasing liquidity provision and directly amplifying price fluctuations.

Additionally, on-chain legacy token anomalies triggered panic selling. An ICO wallet from 2015 transferred 40,000 ETH on the same day. The original cost of these tokens was only $12,400, now valued at approximately $120 million. The movement of low-cost chips triggered market expectations of potential sell-offs. Furthermore, the Yearn Finance vulnerability exploitation led to large-scale liquidations in derivatives markets, with total crypto market liquidations reaching $667 million, including $246 million related to ETH. Forced liquidations of leveraged traders created a positive feedback loop of falling prices.

On a macro level, expectations of Bank of Japan interest rate hikes led to closing of carry trades, and ongoing Federal Reserve policy uncertainty continued to suppress risk appetite. ETH order book depth decreased by 1.4% compared to the 7-day average, with liquidity contraction reinforcing the price decline. The technical death cross signal further intensified short-term pressure.

The market still holds a large number of leveraged positions, with ETH approaching the critical support zone around $2050. Caution is needed regarding programmatic sell orders and chain reaction liquidations. Future focus should be on institutional fund flows, macro policy developments, and key support levels.