Ethereum’s price dropped 1.77% over the last 24 hours amid a cooling market. Trading volume slipped just over 6%, while Open Interest declined by 3.2%. Data from CoinGlass points to significant long liquidations since July 22, with around $67 million wiped out, intensifying selling pressure in perpetual futures markets.
Market Data Reflect Bearish Signals
CryptoQuant figures reveal the funding rate for Ethereum remains positive but has been easing, moving from +0.0088% to +0.0054% in early July. This subtle decrease highlights softening demand from derivatives traders. The taker buy/sell ratio recently hit deep negative territory, signaling aggressive market selling, although its 7-day average still stays above zero, which differs from the sharp dips seen back in May.
Despite some bullish signs like whale accumulation and rising ETF interest, as reported earlier this month, price charts tell a contrasting story. Ethereum’s daily swing structure stayed bearish after breaking below the February low of $1,742 in early June. While the coin bounced somewhat, it failed to clear critical Fibonacci retracement levels tied to a prior selloff from $2,043 down to $1,510.
Traders Brace for Possible Downtrend
The 78.6% retracement level near $1,929 rejected bulls attempting to push higher, confirming a bearish bias across both 4-hour and daily timeframes. Current trends suggest Ethereum could slide toward $1,510 unless it rallies past $2,043, which would negate the bearish outlook. Meanwhile, the network’s validator queue has cleared completely, indicating solid conviction by long-term stakers despite short-term price struggles.
The derivatives market’s recent aggressive sell-offs combined with a declining funding rate hint at fading enthusiasm. This cooling contrasts with the recent institutional demand seen in related assets, underscoring varied momentum across the crypto space.
