Important points
- Momentum indicators suggest that downward pressure is easing, but $ETH It remains below several major moving averages.
- The broad technical outlook remains cautious until buyers reclaim the resistance level above $1,800, with support near $1,741 likely to play a key role in determining the next big move.
$ETH Open interest falls to multi-week lows
Ethereum ($ETH) Derivatives markets remain depressed after weeks of falling prices, reflecting the cautious stance of leveraged traders.
rear $ETH Falling below the $1,800 level, futures open interest plummeted to 13.64 million. $ETH On Sunday, it hit its lowest level since early May.
Open interest There was a modest recovery on Monday as Ethereum rebounded above $1,700, but overall participation remains well below recent highs.
Open interest represents the total amount of futures contracts outstanding. Since May 28th, the Ethereum futures market has witnessed a decline of around $2 million. $ETH This highlights a significant reduction in leveraged exposure and a growing risk-off sentiment.
Funding rate data shows similar alarm. Over the past two weeks, Ethereum funding rates have fluctuated between positive and negative territory, indicating a lack of clear conviction on the part of both bulls and bears.
The funding rate is a periodic payment exchanged between long and short traders in the perpetual futures market. Positive interest rates indicate bullish sentiment, while negative interest rates indicate stronger bearish sentiment.
After the adjustment on June 5, the market tone changed noticeably, pushing funding rates into negative territory after almost a month of positive indicators.
nevertheless $ETH There has been a modest recovery since then, but bullish traders are struggling to regain control.
Spot market indicators show little evidence of active accumulation. Ethereum’s foreign exchange reserves have declined slightly over the past two days, reversing some of the increase recorded last week.
While a decline in exchange balances may indicate accumulation, the movement is still too small to indicate demand strength.
Ethereum price analysis: $ETH trapped below a critical resistance value
Ethereum continues to trade within a bearish short-term structure despite recent stabilization.
On the 4 hour chart, $ETH The 20-day EMA remains below $1,794, the 50-day EMA remains below $1,955, and the 100-day EMA remains below $2,108.
The concentration of these moving averages above the current price level indicates that any attempt to move higher continues to face significant resistance.
Although the overall trend remains bearish, some technical indicators suggest that the downside momentum may be weakening.
The Relative Strength Index (RSI) is climbing towards the mid-50s, indicating that selling pressure is easing but there are no signs of a bullish reversal yet.
For Ethereum to build a stronger recovery, bulls need to regain some key resistance zones.
The immediate resistance at $1,794 could pave the way for a longer-term rally towards the psychological levels of $1,806 and $1,909.
A sustained move above these levels would significantly improve Ethereum’s outlook.
On the downside, Ethereum faces some key areas of support. If the bearish trend continues, immediate support is seen at the $1,524 level, with another demand zone at $1,405.
If selling pressure increases and this level cannot be maintained, $ETH It is likely to fall towards the next key support area around $1,156.
