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According to Pluang, Bankless co-founder David Hoffman disclosed the sale of his entire ETH position as Ethereum traded near $3,700 in late May 2026, but he emphasized his positive outlook on Ethereum’s future. Crypto News adds that this high-profile move came during heightened volatility, with daily price swings over 6% and record open interest in ETH futures.
Hoffman’s sale marks a key turning point for sentiment among longer-term holders, but it doesn’t signal lost faith in the protocol. Pluang points to that Hoffman reaffirmed his commitment to the Ethereum ecosystem.
Pluang reports that news of Hoffman’s ETH sale surfaced on May 25, 2026 and moved rapidly across Ethereum forums and social channels. According to Cryptorank, David Hoffman — well-known in the Ethereum community — confirmed his full liquidation of ETH holdings but noted continued belief in Ethereum’s potential.
That $3,700 price point attracted heightened trading activity. The announcement coincided with ETH spot volumes gaining sharply during the week, says Crypto News. Order book depth data from Pluang showed buy-side bids below $3,600 jumping 7%, as traders positioned defensively after the news. Volatility in ETH perpetual swaps rose, notes Cryptorank, signaling a reactive mood among traders following the Bankless update.
$ETH Daily Chart: Channel Support Is All That…
Crypto ETH traded near $3,700 on May 26, 2026, with the daily chart revealing Ethereum perched above essential ascending channel support. Losing this channel could trigger a rapid fall to $1,900. Cryptorank explains that the support trendline was first tested right after the Bankless news. Trading volume reached $3.1 billion each day — 12% above April but within seasonal range.
The $3.1 billion turnover figure shows that current price levels have attracted greater interest. Cryptorank confirms average daily turnover holding at these highs. Pluang finds net outflows from top exchange wallets of $420 million over five days, suggesting some large holders are reducing risk amid chart weakness.
Daily closes below the channel may trigger stop-loss events, warns Crypto News, sending ETH down to the $1,900 psychological threshold.
$ETH Hourly Chart: Downtrend Intact, MACD Trying to Turn
Crypto analysts tracking the Moving Average Convergence Divergence (MACD) indicator note it managed its first encouraging crossover in 48 hours on May 26, but the signal didn’t bring in sustained buyers.
Hourly Relative Strength Index (RSI) readings stayed capped at low levels, confirming persistent cautious undertones. According to Pluang, buy-side bids below $3,600 increased 7% as buyers clustered near historic averages, but this demand wasn’t enough to halt the decline.
Why $ETH Sentiment Turned This Negative This Fast
The Fear and Greed Index for Ethereum dropped from 58 (“Greed”) to 24 (“Extreme Fear”) between May 22 and May 26.
Pluang notes $420 million in exchange outflows in five days as an indicator of capital leaving for safety. Funding rates for perpetual swaps turned negative on Bybit and Binance, with more traders paying to hedge against further declines. Crypto News tracks over $150 million liquidated in leveraged ETH longs in one session, deepening the mood shift even further.
- Funding rate drop:Negative on major exchanges for the first time in a month.
- Spot volume surge:Weekly volume highest since March 2026, per market tracking.
$ETH Derivatives: Longs Taking Heavy Losses, OI Barely Moving
Crypto News underscores that more than $150 million of ETH long positions were liquidated between May 24 and May 26, as price declines and rising short interest battered bulls. Yet Cryptorank reports open interest (OI) in Ethereum derivative contracts barely changed, holding stable at roughly $6.2 billion — a surprise given the forced selling.
That lack of OI unwind diverges from typical past selloffs and may mean many traders are holding hedges or waiting for direction. CME, Binance, and Bybit all remain at the high end of OI range.
Pluang observes perpetual swap funding turned negative, with short sellers paying a premium — a sign of deep risk-off tone. Crypto News confirms that the spot-to-futures basis dropped to a four-month low of 0.9%, reflecting weaker conviction from bulls and less risk appetite across the board. Sidelined capital holds measured, as stablecoin inflows to Ethereum reached $460 million, awaiting signaled direction before re-entering.
| Derivative Metric | May 26, 2026 | Change (vs. prior week) |
|---|---|---|
| Long futures liquidations | $150 million | +36% |
| Ethereum derivatives OI | $6.2 billion | -3% |
| Perpetual swap funding rate | -0.015%/8H | -0.02%/8H |
| Spot-to-futures basis | 0.9% | -0.6% |
$ETH Price Prediction for May 26
News, most technical analysts agree: ETH’s short-term outlook hinges completely on whether the $3,700 support holds. If lost, downside targets cluster close to $1,900, setting up a simple binary technical structure.
Pluang remarks that should $3,700 hold, short-term rebound potential grows, especially with oversold hourly readings and pending news on the spot ETH ETF timeline. Cryptorank finds the probability-weighted target is for ETH to finish May close to current price, based on continuing macro pressure and thin market liquidity ahead of U.S. Memorial Day. Crypto on-chain flows into DeFi rose 2.8% week-on-week.
A Meaningful Departure from a Core Belief
Cryptorank points out that Hoffman’s ETH exit represents a shift in perceptions among Ethereum’s earliest core supporters. Hoffman restated belief in Ethereum as a long-term force, but Crypto the move reflects a turn toward risk management among even the strongest bulls. Trader talk in channels monitored by Pluang shows some holders shifting to DeFi stablecoins, using yield to wait out macro volatility.
Risk discipline is having more influence over sentiment than open optimism. That may redefine “bullishness” in crypto. For more Bankless co-founder ETH sale coverage, see ST News.
Conclusion: What’s Next for Ethereum Sentiment
Wide exchange balances shrank by $420 million last week, per Pluang, demonstrating a flight to safety among institutions. On-chain, ETH flows into DeFi protocols were up 2.8%.
Disclaimer: The content on this page is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.
Sarah Williams is a blockchain technology editor and investigative journalist with 6 years of dedicated crypto reporting. Formerly an editor at CoinDesk, Sarah has broken stories on exchange insolvencies, DeFi exploits, and regulatory enforcement actions. She holds a B.S. in Computer Science from MIT and contributes to the MIT Digital Currency Initiative. Sarah is a frequent speaker at Consensus, Token2049, and ETHGlobal events.
Conflicts of interest
I hold no positions in any cryptocurrency mentioned in my coverage. All investment-related content is reviewed by senior editors before publication. I am not compensated by any project I cover.
