Ethereum's derivatives market is showing signs of significant deleveraging, with futures open interest dropping 25% from May highs and nearly half a million coins exiting exchange wallets. The moves have refocused attention on the $1,500 support level, a threshold that could determine the next major directional move for the second-largest cryptocurrency.
Open Interest Declines Sharply Across Exchanges
According to data from CryptoQuant analyst Amr Taha, total ETH futures open interest across all exchanges has fallen to $12.6 billion, down from $16.6 billion recorded in May. The decline has brought activity on several major platforms back to levels last seen in April 2025, indicating that a substantial portion of leveraged positions has been unwound.
Gate.io experienced the steepest contraction, with open interest dropping to $2.68 billion on June 9 from $4.84 billion on May 7—a decline of roughly 45%. That figure now sits almost exactly where it stood on April 11, 2025. Bybit has seen a similar reset, with open interest near $805 million compared with approximately $795 million in early April 2025.
Binance presents a different picture. Open interest remains around $2.76 billion, but funding rates have turned negative to approximately -0.0047. This suggests that short sellers are paying to maintain their positions, reflecting cautious sentiment despite the broader reduction in leverage elsewhere.
Exchange Reserves Drop as Supply Tightens
Beyond derivatives, exchange reserves have also moved lower. Data tracking Binance, OKX, Gemini, and Bitfinex shows roughly 480,000 ETH left those platforms over the past few days. Binance's reserves declined to 3.65 million ETH on June 9 from 3.87 million ETH on June 4. Bitfinex holdings fell to 2.50 million ETH from 2.67 million ETH at the end of May. OKX posted the largest percentage drop, with reserves decreasing from 424,000 ETH to about 336,000 ETH, while Gemini's balance slipped to roughly 522,000 ETH.
Lower exchange balances can reduce readily available supply if demand returns, but price action remains under pressure as macroeconomic uncertainty weighs on risk assets. Over the past seven days, ETH has lost about 12% and was trading near $1,628 at the time of writing.
Technical Picture Remains Bearish
The daily chart shows ETH trading beneath its 20-day, 50-day, 100-day, and 200-day exponential moving averages, a structure that points to continued weakness. The 20-day EMA near $1,848 now represents the first major recovery hurdle, while the 50-day EMA around $2,025 sits higher as another resistance zone.
Momentum indicators have entered deeply oversold territory. The daily relative strength index has fallen to around 25, a level that often accompanies periods of heavy selling pressure. However, no confirmed bullish divergence has appeared on the chart, leaving traders focused on whether support can hold.
Macro Headlines and On-Chain Data Add to Uncertainty
Markets are awaiting the latest US Consumer Price Index report. Following stronger-than-expected US jobs data last week, expectations for another Federal Reserve rate hike by December have risen to roughly 70%. A hotter-than-expected inflation reading could push those odds above 80%, increasing pressure on risk assets such as Ethereum as investors rotate toward yield-bearing instruments, including short-dated US Treasuries. A softer inflation print could provide relief for crypto markets and help ETH attempt another move toward the $1,700 to $1,850 range.
On-chain data cited by market commentator Gonza Goth shows only 11% of Ethereum's supply is currently sitting on gains of 3x or more, the lowest level since February 2017. According to Goth, periods of extreme pessimism have historically coincided with attractive opportunities for long-term investors.
$1,500 Support in Focus
Attention now remains fixed on the $1,500 area. Fellow analyst and investor Ash Crypto noted that Ethereum failed to hold successive support levels during the 2022 bear market before eventually bottoming near $880. According to the analyst, a weekly close above $1,500 would preserve a historically important support zone, while a sustained break below that level could bring the next major support region near $1,000 into focus.
For broader market context, see our coverage of the Dow's recent decline amid AI-led tech selloffs and the waning institutional demand for XRP.
This article is for informational purposes only and does not constitute financial advice.
