ETH drops 2.4% in 15 minutes: Ethereum Foundation layoffs combined with short accumulation trigger sell-off

During the period from 02:00 to 02:15 (UTC) on June 26, 2026, ETH plunged 2.40% in 15 minutes, with a price range of 1520.92-1560.94 USDT and a volatility of 2.57%. The price has fallen back to 2025 levels, with market sentiment in panic and volatility intensifying.

The main driver of this unusual movement was the Ethereum Foundation's announcement of a massive 20% layoff and 40% budget cut. The news directly hit market confidence in the network's long-term development capabilities, with some holders choosing to reduce positions and exit. The debate within the community over the "relationship between ETH and Ethereum" further heated up, exacerbating short-term selling pressure.

Second, institutional bearish sentiment continues to strengthen. Standard Chartered sharply lowered its 2026 ETH target price by 47% to $4,000 in early June, suggesting the price may need to drop to $1,400 before bottoming. The huge gap between institutional target prices and short-term technicals has made market participants cautious.

Meanwhile, short-side forces in the futures market are highly concentrated. ETH open interest hit an all-time high of 16 million ETH, with funding rates remaining negative, reflecting a short-dominated pattern. The technicals show a bearish moving average alignment. In the past 24 hours, among $157 million in liquidations, long positions accounted for $140 million, with passive selling forming a negative feedback loop. Spot trading volume has fallen to multi-year lows, and shrinking liquidity further amplifies price volatility.

In the short term, one should be wary of the risk of a short squeeze under high open interest in the futures market. If the price rebounds quickly, volatility may intensify. Key support is focused on the $1,400-$1,500 range. On-chain capital flows and institutional position dynamics are important indicators to watch.