Ethereum slides 12% to $1,628 as open interest falls 25%

Ethereum fell about 12% over the past week to roughly $1,628, while futures open interest shrank 25% since May and exchange reserves shed nearly 480,000 ETH, tightening on‑chain supply and leaving the $1,500 support level as the next decisive hurdle [1].

Derivatives reset and on‑chain flow

Futures open interest fell from $16.6 bn in May to $12.6 bn, a 25% contraction that pushed activity on major platforms back to April‑2025 levels, indicating a large portion of leveraged positions has been cleared [1]. Gate.io saw the steepest drop, with its ETH open interest falling 45% to $2.68 bn, while Bybit’s figure settled near $805 m, both mirroring pre‑April levels [1]. Binance’s open interest held around $2.76 bn, but its funding rate turned negative (~‑0.0047), meaning short sellers are paying to keep positions, a sign of cautious sentiment that could flip if price stabilises [1].

On‑chain, the combined reserves of Binance, OKX, Gemini and Bitfinex fell by roughly 480 k ETH in a few days, with Binance’s balance slipping from 3.87 m to 3.65 m ETH, OKX dropping from 424 k to 336 k, and Gemini and Bitfinex each losing about 150 k ETH [1]. Lower exchange balances can reduce readily available supply, but the price remains under pressure as macro uncertainty looms.

Market context and price outlook

Ethereum’s price sits below its 20‑day, 50‑day, 100‑day and 200‑day EMAs, a pattern that points to continued weakness, while the daily RSI is near 25, a deeply oversold reading that historically accompanies heavy selling pressure [1]. The $1,500 line is the nearest technical support; a weekly close above it would preserve that zone, whereas a sustained break could shift focus to the $1,000 region [1]. A rebound toward $1,700‑$1,850 is plausible if the U.S. CPI report comes in softer than expected, easing risk‑off sentiment that has been heightened by recent strong jobs data and rising expectations of a Fed rate hike [1].

CoinDesk reported that on the same day ETH was trading around $1,750, with $390 m of ETH futures liquidated over two days, reinforcing the notion that leveraged longs are being flushed out across the market [2]. Put skews on ether options have strengthened, indicating that traders are paying premiums for downside protection, a further sign of bearish bias [2].

What to watch

• A weekly close below $1,500, which could trigger a move toward the $1,000 support zone.
• U.S. CPI release (date not specified) – a hotter print may push risk assets lower, while a softer figure could aid a rebound.
• Changes in exchange reserves, especially any large inflows back to major platforms, which would increase immediate sell‑side supply.

The convergence of shrinking derivatives exposure, sizable ETH withdrawals from exchanges, and a fragile technical support level makes the $1,500 barrier a critical test for Ethereum’s near‑term trajectory. Whether the market holds above that line or slides lower will shape sentiment ahead of the upcoming CPI data.