Ethereum is showing more vulnerability than other major assets in a macro environment of rising inflation pressure and greater interest-rate uncertainty, an assessment said.

On May 20, blockchain media outlet Cryptopolitan reported that market maker Wintermute has recently pointed out that Ethereum is struggling to adapt to uncertainty.

Wintermute said the broader crypto market is facing rising inflation pressure. The projected increase in the consumer price index was 3.7 percent in March and rose to 3.8 percent in April. It cited inflation in the second quarter of 2026 and uncertainty surrounding a blockade of the Strait of Hormuz as factors that raise the chances of a U.S. Federal Reserve rate hike toward the end of the year. It said crypto generally responds more favorably to accommodative monetary policy, meaning the possibility of a December rate hike could weigh on the market.

Expectations for rate cuts have weakened. Federal funds rate futures pointed to the possibility of rates being held or raised, and oil prices have again topped $102 a barrel over the past week. Brent crude rose 8.6 percent.

Ether weakness appeared in both spot and derivatives indicators. Ether traded at $1,128.61 and fell 10.2 percent over the past week. Its value against bitcoin slipped to 0.0275 BTC. Funding rates weakened and weekly implied volatility rose. Ether fell to around the usual support level near $2,100.

ETF fund flows also slowed. Institution-led selling pressure was estimated at an average of about $88 million per day. Glassnode data and Wintermute analysis showed ether selling proceeded at the fastest pace since February.

Investor sentiment also worsened. Ether sentiment fell to 27 from 47 over the past week, entering the fear zone. Selling accelerated in Binance futures markets, and the buyer-taker ratio fell to 0.91 percent. Open interest fell by $1.0 billion to $12.4 billion. More than 72 percent of Ethereum positions are concentrated in longs, leaving room for additional long liquidations.

Long-term holding indicators, however, held up. Ethereum remains a core hub for decentralised finance, and no large liquidation cascade has emerged so far. About 24.6 million ETH is held in accumulation addresses, and more than 31 percent of total supply is locked in staking, the outlet reported.