Ether’s price has experienced a substantial downturn, losing 7% in just three days, which has exacerbated selling pressures despite an increased use of leverage in the market. This downward shift is concerning analysts who suggest further decreases are likely after breaching the important $2,000 barrier.
Is Leverage the Critical Factor?
According to a review by CryptoQuant, even though the estimated leverage ratio for Ether remains high at 0.74, this has not facilitated a price uptick as normally expected. Instead, Ether’s price continues to erode, contrary to the prevailing dominance of long market positions.
The concern, as expressed by analyst PelinayPA, stems from the persistence of elevated leverage and predominant long positions, yet the Ether price fails to show recovery signs. This is compounded by weak relative strength index (RSI) indicators.
What is Removing Institutional Appetite?
The loss of interest from institutional investors is marked by steady outflows from US-based Ethereum spot ETFs, which have persisted for thirteen consecutive days, summing up to $695 million in withdrawals. One particular day noted a $121 million outflow, the largest in recent weeks, marking a retreat from larger investors.
Furthermore, analyst Amr Taha points out that the dwindling cumulative net buyer volume on Binance, now at -$744 million, illustrates a potent selling force, rivaling figures not seen since April 2026.
Market evaluations indicate notable pressure points:
- Immediate support level stands firm at $1,800.
- Main long-term support lies at $1,750, a breach may elevate sellers’ momentum.
- An earlier bottom was recorded at $1,550 in April 2026.
- 2022 saw the macro low touch $1,000.
- A potential recovery pivots on surpassing $3,050 resistance.
Analysts caution that unless Ether rebounds to trade above $2,000, the downward trends will likely prevail. The defense of $1,800 and $1,750 remains imperative, as does a decisive push beyond these levels to alter the descending trajectory.
Analysts highlight that both the continuation of risky positions in the derivatives market and persistent institutional outflows are key factors deepening the current downward pressure.
With the market sentiment remaining bearish, the role of strategic buying initiatives is underscored as a necessity to stabilize Ether’s price and counter the ongoing negative momentum.
