Ethereum’s price is having trouble staying above $2,025, even with a lot of traders using borrowed funds and generally optimistic market sentiment. The price could fall further, as an indicator suggests it’s nearing a point where it’s considered oversold.
Ethereum’s price is currently fluctuating around $2,025.53, and it’s seen a small increase of about 0.41% in the last day, according to CoinGecko.
The weekly chart, however, paints a much weaker picture.
Ethereum’s price has fallen by 4.48% in the past week. Experts are noticing a disconnect between trader expectations and the actual price movement, which suggests the price may continue to drop in the short term.
Related reading:
ETH Bought but Still Bleeding; Hidden Sell Walls May Be Eating Every Rally
Elevated Leverage Without Price Support Raises Red Flags
CryptoQuant’s PelinayPA recently pointed out a potential issue: the amount of leverage currently being used on Ethereum is around 0.74. This could be a cause for concern in the market.
That level signals heavy leverage concentration across the market.
Typically, when prices go up, so does the use of borrowed money. But that’s not the case right now.
Prices continue drifting lower even as leverage holds at elevated levels.
PelinayPA explains that the market is currently shaped more by bets on future prices (derivatives) than by actual, immediate demand. This is significant because it makes the market unstable and vulnerable to a sudden drop in price, with little capacity to handle it.
The amount of trading has decreased significantly since mid-May, making the current market situation even more fragile.
Ethereum’s Downside Pressure May Continue
Despite high levels of debt and a continued preference for buying over selling, the price isn’t increasing much, and indicators suggest momentum is slowing down. This points to a likely decrease in price over the short term, according to @PelinayPA.
— CryptoQuant.com (@cryptoquant_com) May 29, 2026
Positive Funding Rates Are Not Translating Into Price Gains
Recent data on funding rates is also raising concerns. Analysis from PelinayPA on CryptoQuant shows the funding rate has generally stayed positive in recent trading periods.
Ethereum’s derivatives market still heavily favors long positions, meaning most traders are betting the price will go up. However, the price isn’t reacting to this positive outlook.
Despite traders expecting prices to rise, Ethereum hasn’t been able to maintain those gains. According to PelinayPA, this disconnect between expectations and actual performance is a concerning signal.
If investors expect a price to go up, but it stays flat, it usually means that the initial enthusiasm is fading. When trading volume also decreases alongside this stalled price movement, it becomes a clear sign that the upward trend is losing strength.
RSI Nears Oversold Zone as Momentum Continues to Fade
The Relative Strength Index is adding more weight to the bearish outlook.
According to PelinayPA, the Relative Strength Index (RSI) is around 31, which suggests the asset is nearing oversold conditions. Currently, selling pressure is stronger than buying pressure, and the indicator isn’t showing any clear signs of a price rebound yet.
The Relative Strength Index (RSI) is still falling as the price moves sideways or slightly lower. This indicates that, currently, there’s more downward momentum than upward.
If Ethereum $ETH prints a weekly close below $1,850, a downside acceleration becomes highly likely.
Looking at the technical side of things, the way the market is structured suggests two key price levels where we might see a drop after this recent setback.
• First Target: Around $1,560 (interim…
— Ali Charts (@alicharts) May 29, 2026
Technical analyst Ali Charts highlighted important price levels to monitor. According to Charts, if the price falls below $1,850 at the end of the week, it could lead to a quicker and more significant price drop.
If the price drops, the first significant level to watch is around $1,560, which could act as a temporary base. If it falls further, ETH could potentially drop to $1,070 – the lowest price it’s been in several years.
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2026-05-30 01:15