Ethereum is showing signs of continued weakness as price action, funding rates, leverage levels, and RSI all point to growing downside pressure in the short term. The market structure suggests that derivatives activity is driving more movement than spot demand.
ETH has been forming lower highs over recent weeks, while trading volume has also been falling since mid-May. Despite this, leverage levels remain elevated, showing that traders are still heavily active in the market even as price trends downward.
Why is Ethereum price struggling despite high leverage?
Ethereum’s estimated leverage ratio is currently around 0.74, which is still relatively high. In normal conditions, rising leverage often supports stronger price moves upward.
However, in this case, leverage remains high while price continues to fall. This mismatch suggests that trading activity is being driven more by futures positions rather than real buying demand in the spot market. This creates a weaker market structure and increases the risk of further downside moves.
What do funding rates say about market sentiment?
Funding rates remain mostly positive, which means long positions still dominate the market. Traders are generally positioned for upside.
However, the price is not responding to this bullish positioning. This divergence shows that buyers are losing strength, even though expectations remain positive.
When long positions stay high, but the price fails to rise, it often signals weakening momentum.
What do RSI and momentum show for ETH?
Ethereum’s RSI is currently near 31, close to oversold levels. This indicates that selling pressure is still stronger than buying pressure in the short term.
RSI has also not shown a clear recovery and continues to trend downward. Combined with lower highs and weak volume, this suggests that momentum is still tilted to the downside. Overall, leverage remains high, long positions dominate, and momentum is weakening, keeping short-term pressure on Ethereum.
Ethereum has been struggling to build momentum after its recent decline, while BNB has recovered more steadily and is holding its gains better. This suggests investors may currently view BNB as the more stable of the two.
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