Ethereum slides to $2,260 as price falls 60% in 2026, Bitcoin flat

Ethereum fell to $2,259.61 on May 14 2026, marking a 60% decline from its recent cycle high and testing key support levels that many investors hoped would hold [1].

What drove the slide

The primary trigger was the U.S. government’s sudden imposition of a 15% global tariff, announced in late February 2026, which drained liquidity from risk‑on assets and forced a rapid reallocation away from crypto [1]. The tariff shock coincided with a broader correction in AI‑related equities, prompting institutional portfolios to cut exposure to high‑beta tokens. As treasury yields spiked, the cheap capital that typically fuels crypto rallies evaporated, pushing the Crypto Fear & Greed Index into “Extreme Fear” territory.

On‑chain and token‑omics pressure

Beyond macroheadwinds, Ethereum’s tokenomics added downward pressure. Recent on‑chain metrics show the MVRV Z‑Score sinking to –0.42, a level historically linked to capitulation points in prior bear markets [1]. Simultaneously, the network’s net issuance has turned positive: Layer‑2 scaling solutions have reduced L1 transaction fees, lowering the amount of ETH burned under EIP‑1559. Consequently, validator rewards now exceed the burn rate, expanding circulating supply and diluting price support [1].

Bitcoin’s muted movement

Bitcoin’s price showed little volatility this week, hovering near $65,100, with no major catalyst reported in the available data. The lack of a pronounced move suggests that market participants are awaiting further macro signals before committing capital to the flagship cryptocurrency.

What to watch

• Ethereum support at $2,000 – a break could trigger further liquidations and push the price toward the $1,500 level cited by bearish models.
• MVRV Z‑Score – a rise above –0.2 would indicate reduced capitulation risk.
• U.S. tariff policy updates – any reversal or escalation could shift risk sentiment and affect both ETH and BTC.

The ETH decline underscores how macro policy shocks can quickly override on‑chain fundamentals, while Bitcoin’s steadiness highlights its role as a barometer for broader market risk. The next price moves will likely hinge on whether tariff pressures ease and whether Ethereum’s supply dynamics can be re‑balanced by renewed demand.