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ETH falls to 13-month low : ETH plunged under $1,600 after the May 29 disclosure of a vital Zcash bug , according to Cointelegraph. Bitcoin drops below $60K in the same week, triggering $1.28 billion in leveraged long liquidations across just five days, as Crypto News reports. Those moves compounded existing market stress for Ethereum—most core DeFi protocols endured TVL contractions of over 40%.
Deribit’s data shows the ETH options put-to-call premium surged to 3.7 times on Friday, reflecting traders’ rush to seek downside protection. Cointelegraph adds that only 30% of ETH addresses remain in profit now, according to Cointelegraph, which closely matches capitulation levels last seen during the COVID-induced market crash of March 2020. As sentiment slides for both retail and institutional participants, investors are left wondering if $1.4K is next for ETHas the next crucial floor for Ethereum. Those steep corrections have seriously shaken confidence as ETH tests its lowest price in over a year—battered holders are reassessing their risk profile. For those scanning the markets for opportunities, Best Crypto to Buy Before the Bull Run: $GRUNTLE at $0.00062 offers one in-depth take on potential value plays.
ETH price followed Zcash: Why?
Cointelegraph reports that TVL in top Ethereum DeFi projects collapsed alongside the broader selloff. Spark Finance plunging by 50%, Ether.fi by 49%, EigenCloud by 41%, and KernelDAO by 39%. That scale of contraction signaled a direct link between Zcash bug Ethereum’s 13-month low price rout, making traders leave DeFi liquidity pools and amplifying outflows across the network. As the Zcash flaw reached mainstream headlines, DeFi liquidity fragmentation sped up, sending even more capital off Ethereum. Market participants watched as liquidity dried up, forcing traders to downsize risk positions—removing crucial support and strengthening the correlation between Zcash’s crisis and ETH’s sudden drop.
Market makersNews, scrambled to slash bid-side liquidity and create short-term hedges aimed at softening further downward spikes in ETH. As risk-off sentiment spread, volatility in ETH and Zcash became intertwined—every fresh data point drove immediate reactions.
Editor’s choice: Is $1.4K next for ETH?
Last week saw some of 2026’s most brutal swings for digital assets. Ethereum’s dip under $1,600and Bitcoin’s breach of $60,000grabbed traders’ attention worldwide. a staggering $1.28 billion in leveraged long positions got forcibly liquidated in only five days during theETH and Bitcoin drop.
Cointelegraph’s data reveal that after this spike in forced selling, just 30% of all ETH coins remain “in profit,” measured by their on-chain cost basis—a scenario reminiscent of capitulation lows.
Crypto the infamous Zcash vulnerabilitywas first uncovered using Anthropic’s Opus 4.8 AI model on May 29, intensifying security concerns and potentially fueling the ETH dropto multi-month lows.
Bitcoin ETF assets remain below recent highs after Bitcoin drops below $60K
Cointelegraph points out that Bitcoin’s sharp drop below $60,000 sent shockwaves through the exchange-traded fund sector—spot Bitcoin ETF assets are still well below 2026’s highs. According to Bitcoin Price Crashes Below $60,000 as US Jobs Report Tri…, while early-year optimism drove institutional inflows, the quick reversal in price saw capital flee faster than new money arrived.
Crypto News confirms that retail investor flows into spot Bitcoin ETFs have shrunk dramatically since Q1 2026 after the recent Bitcoin drop below $60K.
Bitcoin broke $60K, taking out the low from Feb. 2025. At just below $59,750, Bitcoin was at its lowest since Oct. 2024, wiping out all of its post-Trump-election gains. Bottom fishers sent the price back above $61K. If today’s low is taken out, prepare for a Crypto Black Monday.
— Peter Schiff (@PeterSchiff) June 5, 2026
| Date | BTC Price | ETF Net Flow |
|---|---|---|
| 2026-03-10 | – | – |
| 2026-04-22 | – | – |
| 2026-06-04 | – | – |
$60,000 — BTC Breaks Key ETF Level as Bitcoin fallspast a pivotal mark.
Ether ETFs and $HYPE funds continue to diverge as ETH falls
As reported by Msn, the recent volatility’s created a clear gulf between Ether spot ETFs and high-risk altcoin or meme token funds. While ETH falls to a 13-month lowand Ether ETFs suffered outflows, meme coin portfolios and risky DeFi products attracted fresh capital. And while institutions keep seeking safety through regulated ETF exposure, many retail traders are chasing explosive gains in meme coin names, hoping to land big wins during this period of ETH and Bitcoin drop.
Cointelegraph data discloses that, since March, speculative funds drew in powerful buybacks—March through June saw risky indexes nearly offset ETF outflows dollar for dollar. So, retail traders are clearly taking bigger risks as blue-chip assets stagnate. Rising ETF premium-to-NAV spreads, triggered by volatility, force leveraged traders to exit even faster. Spiking DEX volumes point to more ETH rotatinginto altcoins—those flows now offer a solid indicator of aggressive sentiment among traders. As market data confirms, surging swap activity and ETF NAV discounts make the strategic split between books even wider.
Bitcoin Tests $60,000 Options Level after drop to sub-$60K
Crypto how Bitcoin’s slip below $60,000shifted the spotlight to that strike’s massive options open interest. Deribit data shows huge clusters of puts and calls stacked at $60,000, forming an unpredictable “gamma wall” that only fueled sharper volatility once breached.
At-the-money option premiums leaped, and open interest at the $60,000 strike hit multi-month highs on Deribit, asBitcoin dropped below that benchmark.
$1.2B — Open Interest on $60K BTC Strike (Deribit).
Michael Saylor Defends Bitcoin Treasury Model Amid Bitcoin Drop
Cointelegraph documents Michael Saylor’s defense of MicroStrategy’s choice to front-load Bitcoin in its treasury—even with prices below $60,000 after the Bitcoin drop.
Yet, Crypto MicroStrategy’s persistence is fueling renewed debate—especially after back-to-back security incidents and the latest Zcash bugdented market confidence. Calls are growing for heightened technical safeguards and robust auditing, as well as smarter hedging strategies among firms invested in crypto. Pressures on public companies are mounting as regulators—and the drumbeat of headline hacks—shape corporate risk. Notably, Cointelegraph tallies $630 million stolen from crypto protocols in April alone, highlighting the scale of the threat posed by cross-chain flaws like the Zcash bug.
MVRV Signals Accumulation Watch Zone as ETH Tests $1.4K
Cointelegraph shows that Ethereum’s MVRV ratio has fallen back to levels not seen since the March 2020 crash, with only 30% of ETH in profit. A signature sign of capitulation and a signal that raises the question: Is $1.4K next for ETH?’s worst week since July 2024 deepens as BTC, ETH p…, periods like this often precede accumulation phases, as high-conviction holders buy the dip.
- Depth of Capitulation: With just 30% of ETH “in the money,” that profitability profile nearly mirrors the March 2020 crisis bottom, per Cointelegraph’s analysis during a time when ETH fell to a 13-month low.
- Accumulation Probability: MVRV lows are often buying signals for whales and hefty funds—unless another protocol shock, such as a Zcash bug, interrupts the cycle.
Core Data Points Driving the ETH falls and Bitcoin drop
| Detail | Information |
|---|---|
| May 29, 2026 | Zcash bug found by Opus 4.8 AI, fueling cross-chain security alarm and driving ETH and Bitcoin drop. |
| $1,600 ETH | Ethereum drops below $1,600 for the first time in 13 months (Cointelegraph), adding to speculation that $1.4K could be next for ETH. |
| $60,000 BTC | Bitcoin falls past $60,000, intensifying liquidations and ETF outflows (Crypto News), with further downside possible after Bitcoin fell to sub-$60K. |
| 50%-39% TVL drops | Major ETH DeFi projects—Spark, Ether.fi, EigenCloud, KernelDAO—see TVL nosedive by up to 50% (Cointelegraph) as ETH falls. |
| $1.28B liquidated | Over $1.28 billion in leveraged longs wiped out in just five days (Cointelegraph). |
| 3.7x option puts | ETH put-to-call premium on Deribit soars to 3.7x, reflecting heavy demand for crash protection as ETH drops. |
| $630M in hacks | Crypto hacks top $630 million in April (Cointelegraph), with security vulnerabilities like the Zcash bug top of mind. |
| 30% in profit | Only 30% of ETH is held at a profit, marking deep market pain and raising the possibility that $1.4K is next for ETH (Cointelegraph). |
| ETF divergence | Ether ETF and meme/altcoin fund flows show striking disparity (Msn) after ETH falls. |
| ETF exit | ETF outflows accelerate after price collapse (Cointelegraph). |
Events to Watch and Final Outlook: Is $1.4K next for ETH?
The coming weeks in crypto are set to revolve around three pivotal issues: resolving the Zcash bugvulnerability across networks, restabilizing DeFi TVL after the ETH falls to 13-month low, and watching whether ETF flows can recover after the Bitcoin dropto sub-$60K. Cointelegraph News confirm that, despite the exodus from blue chips, capital’s still flowing into meme coins and complex options as traders chase quick profits. Meanwhile, protocol teams are in high gear—racing to audit code and patch up cross-chain defenses before another security surprise hits. Add rising macro uncertainty or the specter of new regulations, and risk levels can pivot fast. For a proper rally, the market will need visible on-chain trust, primary inflows to blue-chip assets, and unmistakable proof that the worst security bugs are actually fixed.
Until then, $1,400 stands out as the ETH price level most closely watched. By everyone from retail dip-buyers to institutional overseers, as the ETH drop fueled by Zcash bug the Bitcoin drop below $60K plays out.
