diff --git a/test/e2e/network/loadbalancer.go b/test/e2e/network/loadbalancer.go
index a2dbe8335bc..863a84bc7dd 100644
--- a/test/e2e/network/loadbalancer.go
+++ b/test/e2e/network/loadbalancer.go
@@ -387,8 +387,8 @@ var _ = common.SIGDescribe("LoadBalancers", feature.LoadBalancer, func() {
 		err = udpJig.Scale(ctx, 0)
 		framework.ExpectNoError(err)
 
-		ginkgo.By("looking for ICMP REJECT on the UDP service's LoadBalancer")
-		testRejectedUDP(ctx, udpIngressIP, svcPort, loadBalancerCreateTimeout)
+		ginkgo.By("checking that the UDP service's LoadBalancer is not reachable")
+		testNotReachableUDP(ctx, udpIngressIP, svcPort, loadBalancerCreateTimeout)
 
 		ginkgo.By("Scaling the pods to 1")
 		err = udpJig.Scale(ctx, 1)
@@ -927,11 +927,6 @@ var _ = common.SIGDescribe("LoadBalancers", feature.LoadBalancer, func() {
 })
 
 var _ = common.SIGDescribe("LoadBalancers ExternalTrafficPolicy: Local", feature.LoadBalancer, framework.WithSlow(), func() {
-	// FIXME: What are the expected semantics of requesting an
-	// "ExternalTrafficPolicy: Local" service from a cloud provider that does not
-	// support that? What are the expected semantics of "ExternalTrafficPolicy: Local"
-	// on `IPMode: Proxy`-type LoadBalancers?
-
 	f := framework.NewDefaultFramework("esipp")
 	f.NamespacePodSecurityLevel = admissionapi.LevelBaseline
 	var loadBalancerCreateTimeout time.Duration
@@ -987,6 +982,14 @@ var _ = common.SIGDescribe("LoadBalancers ExternalTrafficPolicy: Local", feature
 			framework.ExpectNoError(err)
 		})
 
+		// FIXME: figure out the actual expected semantics for
+		// "ExternalTrafficPolicy: Local" + "IPMode: Proxy".
+		// https://issues.k8s.io/123714
+		ingress := &svc.Status.LoadBalancer.Ingress[0]
+		if ingress.IP == "" || (ingress.IPMode != nil && *ingress.IPMode == v1.LoadBalancerIPModeProxy) {
+			e2eskipper.Skipf("LoadBalancer uses 'Proxy' IPMode")
+		}
+
 		svcTCPPort := int(svc.Spec.Ports[0].Port)
 		ingressIP := e2eservice.GetIngressPoint(&svc.Status.LoadBalancer.Ingress[0])
 
@@ -1133,6 +1136,14 @@ var _ = common.SIGDescribe("LoadBalancers ExternalTrafficPolicy: Local", feature
 			framework.ExpectNoError(err)
 		})
 
+		// FIXME: figure out the actual expected semantics for
+		// "ExternalTrafficPolicy: Local" + "IPMode: Proxy".
+		// https://issues.k8s.io/123714
+		ingress := &svc.Status.LoadBalancer.Ingress[0]
+		if ingress.IP == "" || (ingress.IPMode != nil && *ingress.IPMode == v1.LoadBalancerIPModeProxy) {
+			e2eskipper.Skipf("LoadBalancer uses 'Proxy' IPMode")
+		}
+
 		ingressIP := e2eservice.GetIngressPoint(&svc.Status.LoadBalancer.Ingress[0])
 		port := strconv.Itoa(int(svc.Spec.Ports[0].Port))
 		ipPort := net.JoinHostPort(ingressIP, port)
diff --git a/test/e2e/network/service.go b/test/e2e/network/service.go
index cea17a7167c..4a9cbb6969a 100644
--- a/test/e2e/network/service.go
+++ b/test/e2e/network/service.go
@@ -606,20 +606,6 @@ func testNotReachableUDP(ctx context.Context, host string, port int, timeout tim
 	}
 }
 
-// testRejectedUDP tests that the given host rejects a UDP request on the given port.
-func testRejectedUDP(ctx context.Context, host string, port int, timeout time.Duration) {
-	pollfn := func(ctx context.Context) (bool, error) {
-		result := pokeUDP(host, port, "echo hello", &UDPPokeParams{Timeout: 3 * time.Second})
-		if result.Status == UDPRefused {
-			return true, nil
-		}
-		return false, nil // caller can retry
-	}
-	if err := wait.PollUntilContextTimeout(ctx, framework.Poll, timeout, true, pollfn); err != nil {
-		framework.Failf("UDP service %v:%v not rejected: %v", host, port, err)
-	}
-}
-
 // TestHTTPHealthCheckNodePort tests a HTTP connection by the given request to the given host and port.
 func TestHTTPHealthCheckNodePort(ctx context.Context, host string, port int, request string, timeout time.Duration, expectSucceed bool, threshold int) error {
 	count := 0