CoinDesk
Ether dropped below $2,000 for the first time since late March, shedding nearly 8% over the past seven days and more than 5% in the last 24 hours alone. Even as spot selling intensified, futures open interest climbed for a third straight session to a record 16.39 million ETH — roughly $32.5 billion notional — a combination that points to aggressive leveraged shorting rather than passive de-risking.
Why it matters
The open-interest-versus-price divergence is the bearish tell. Coinglass data shows the seven-day OI-adjusted cumulative volume delta sitting negative while spot price fell, meaning the move lower is being driven by market-sell orders rather than limit bids being lifted. Markus Thielen, founder of 10x Research, framed the demand-side problem bluntly: "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." Treasury buyer Bitmine stepping back removes the marginal bid that had been absorbing supply.
Market impact
Spot Ether ETFs in the U.S. have bled $401 million this month, more than reversing the $354 million of inflows recorded in April, per SoSoValue. The sentiment backdrop has darkened in parallel: high-profile departures from the Ethereum Foundation, including contributors Carl Beekhuizen and Julian Ma, have been read as a vote of no-confidence from insiders. Bankless co-founder David Hoffman disclosed he sold his ETH holdings, concluding the "ETH is money" thesis has largely played out. Web3 research firm House of Chimera distilled the structural concern: "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." With developer activity still robust but capital rotating out of the token, the near-term path of least resistance remains lower until the futures crowd is forced to cover or spot demand re-emerges.
Frequently asked questions
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Why is ETH falling while futures open interest hits a record?
Rising open interest alongside falling spot price, combined with a negative OI-adjusted cumulative volume delta, signals aggressive leveraged shorting. Market-sell orders are driving the move rather than passive limit bids being lifted.
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How much have US spot Ether ETFs lost this month?
US spot Ether ETFs have seen cumulative net outflows of $401 million this month, more than reversing the $354 million of inflows recorded in April, according to SoSoValue data.
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What is the current Ether futures open interest in dollar terms?
Futures open interest reached a record 16.39 million ETH, equivalent to roughly $32.5 billion notional, based on Coinglass data.
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Who has left the Ethereum Foundation recently?
Prominent contributors Carl Beekhuizen and Julian Ma are among the high-profile departures. Bankless co-founder David Hoffman also disclosed selling his ETH holdings, saying the "ETH is money" thesis has largely played out.
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What is the structural concern about Ethereum flagged by analysts?
Web3 research firm House of Chimera framed it as: Ethereum's chain still matters, but the market is increasingly questioning how the network's infrastructure strength translates back into demand for the ETH token itself.
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