diff --git a/test/e2e/network/loadbalancer.go b/test/e2e/network/loadbalancer.go
index ab25df8a5d2..863a84bc7dd 100644
--- a/test/e2e/network/loadbalancer.go
+++ b/test/e2e/network/loadbalancer.go
@@ -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)