Sharp declines in the price of Ether have intensified selling pressure, despite persistent use of upside leverage in the market. Analysts warn that Ether, which has lost 7 percent in the last three days, could slide further after falling below the key $2,000 support level.
Leverage and shifting market dynamics
Analysis by CryptoQuant reveals that Ether’s estimated leverage ratio remains elevated at 0.74. Typically, high leverage combined with positive funding rates supports price increases. However, in the current environment, the weakening price of Ether stands out, even as long positions dominate the market.
Analyst PelinayPA warns that “despite high leverage and a dominance of long positions, the price continues to fall, with the RSI showing no signs of meaningful recovery.”
Another analyst, Amr Taha, notes that rising leverage ratios have coincided with strong selling pressure. On Binance, cumulative net buyer volume has dropped to -$744 million, its lowest since April 6, 2026.
Glossary: Cumulative net buyer volume reflects the net balance between buyers and sellers on an exchange. Negative values indicate that selling activity is dominant in the market.
Institutional demand weakens as ETF outflows mount
Consistent outflows from US-based spot Ethereum ETFs signal waning interest among larger investors. Recent data shows that these ETFs have seen thirteen consecutive days of outflows, totaling $695 million. Thursday alone recorded a net outflow of $121 million, the highest in two weeks.
According to Cointelgraph’s report, major investor sales and Ether’s fall below the psychologically important $2,000 mark could pave the way for deeper price declines.
Key support zones and possible scenarios
Following recent losses, attention has turned to the $1,800 demand area as a focal point for downward moves. Analyst Suraj Jha suggests that the $1,700-$1,800 range could present an attractive entry zone. Meanwhile, Crypto Patel says the technical outlook requires a reclaim of $3,050 for a sustainable recovery.
According to analysts, for Ether to maintain a bullish long-term trajectory, the $1,750 level must hold. If the daily candle closes below that support, the next target could be the April 2026 low at $1,550, and then the macro bottom at $1,000 seen in 2022. Should this scenario play out, it would represent a 47 percent decline from current prices.
| Support/Resistance Level | Price (USD) | Possible Outcome |
|---|---|---|
| Short-term support | 1,800 | Main level defended by buyers |
| Main long-term support | 1,750 | Break could intensify selling |
| Previous low | 1,550 | April 2026 bottom |
| Macro bottom | 1,000 | 2022 annual low |
| Upside resistance | 3,050 | Level to reclaim for recovery |
Market outlook and levels to watch
Market experts maintain that as long as Ether trades below $2,000, downward momentum is likely to persist in the short and medium term. Buyers are expected to act aggressively to defend the $1,800 and $1,750 levels. Technical analysts emphasize that regaining stability above this area is crucial for any meaningful trend reversal.
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.
