Ethereum’s native token ETH has seen steep losses recently, dipping below the $2,000 threshold for the first time since the end of March on Thursday morning. CoinDesk data shows that ETH lost nearly 8% over the past week, including more than 5% in the last 24 hours alone.
Futures market bucks the spot downturn
Even as ETH’s price slides further, the futures market is picking up steam in a remarkable fashion. Coinglass data reveals that open interest in ether futures has climbed for a third consecutive day, reaching a record 16.39 million coins. This figure translates to roughly $32.5 billion, signaling a new high for active derivative positions, despite falling spot prices.
For context, open interest refers to the total number of outstanding futures contracts that have yet to be settled or closed. An increase in open interest often signals rising participation, greater market interest, and an uptick in risk appetite among investors.
However, while open interest is climbing, both the seven-day futures volume and the Cumulative Volume Delta (CVD) indicator remain negative. The negative CVD alongside sliding spot prices suggests that the recent selling momentum is being driven mostly by aggressive market orders, rather than passive limit orders.
Outflows point to declining confidence in ETH
This divergence between the futures and spot markets highlights a short-term seller dominance in ETH. In the US, spot ETH ETFs have registered net outflows of $401 million so far this month. That number not only erases the $354 million in net inflows recorded in April but also reveals waning investor confidence in these funds.
Leadership departures at Ethereum Foundation rattle community
The present environment within the Ethereum ecosystem is also reflected by a series of high-profile exits from the Ethereum Foundation. The community has taken particular note of the departures of well-known figures such as Carl Beekhuizen and Julian Ma.
Markus Thielen pointed out that investors are comparing ETH staking yields with rising bond yields, and said new buying interest is increasingly limited to Bitmine. He added that consecutive resignations from the foundation are signs of waning appeal for ETH.
Market sentiment shift and questions ahead
Ethereum continues to lead in DeFi, tokenization, and smart contract innovation. Nonetheless, some analysts are questioning how much this stature and steady stream of new solutions are truly reflected in the value of ETH as a token. Notably, prominent community members including David Hoffman—once a staunch proponent of the “ETH is money” thesis—are now reportedly selling off their ETH holdings.
Research group House of Chimera acknowledged Ethereum’s ongoing superiority in ecosystem development but noted that rapid changes in price and market mood often come before shifts in developer loyalty.
For now, the cold climate surrounding ETH persists in the market. Given the sharp decline in price and conflicting signals between spot and futures activity, it appears investors are entering a new phase of reassessment regarding Ethereum’s long-term sustainability.
