Ether’s (ETH) price sell-off is gathering steam amid broader market risk aversion. Yet its futures market is busier than ever, creating a notable divergence with bearish implications.
ETH dropped below $2,000 on Thursday morning for the first time since late March. It is down nearly 8% over the past seven days, with losses exceeding 5% in the last 24 hours alone, according to CoinDesk data.
“More and more people giving up on ETH as it doesn’t generate revenue and with higher bond yields the staking yield is unattractive. The only buyer has been Bitmine but they indicated that they will slow down their purchases,” Markus Thielen, founder of 10x Research, said in an email.
What makes ether’s sell-off particularly interesting is that open interest in ether futures has risen for the third straight day, hitting a record high of 16.39 million tokens, according to data source Coinglass. That equates to a notional open interest of about $32.5 billion. In simple terms, more money is flowing into futures, a leveraged product that amplifies both gains and losses.
However, this record open interest, combined with a negative seven-day OI-adjusted cumulative volume delta (CVD) and the falling spot price, points to aggressive net selling. A negative CVD indicates that price action is being driven by traders taking bearish bets via market orders rather than passive limit orders.
The bearish bias is not limited to futures. Spot Ether ETFs listed in the U.S. have seen cumulative outflows of $401 million this month, more than reversing the $354 million inflow recorded in April, according to SoSoValue data.
Sentiment around Ether has also deteriorated. The Ethereum Foundation has faced high-profile departures, including prominent contributors Carl Beekhuizen and Julian Ma.
“High profile departures from the Ethereum Foundation are also a sign that the original vision is no longer capturing these followers,” Thielen said.
This trend extends to prominent thought leaders and long-time holders. David Hoffman, co-founder of Bankless, recently announced he sold his ETH holdings after concluding that the long-standing thesis of “ETH is money” has largely played out.
Some analysts believe the market is increasingly questioning how much of Ethereum’s dominance in DeFi, tokenization, and other sectors is flowing back to its native token ETH.
“Ethereum’s problem is not that the chain has stopped mattering. It is that the market is questioning how Ethereum’s infrastructure strength translates back to ETH,” Web3 research and consultancy firm House of Chimera said on X.
The firm added that Ethereum still leads other smart contract blockchains in raw ecosystem development activity, with millions of meaningful GitHub events, but noted that prices and sentiment can weaken faster than developer commitment.