Ether under selling pressure after $480M liquidations as funding turns negative

Ether (ETH) faced selling pressure this week after $480 million in leveraged positions were liquidated and network fees fell, while the funding rate on ETH perpetual futures briefly turned negative. ETH endured a three-day, 13.8% correction that retested the $2,900 support for the first time in four weeks before reclaiming $3,000 after US President Donald Trump called off import tariff hikes on various European Union countries.

Traders fear further downside after the two-day liquidation event. The funding rate’s brief negative reading meant shorts had to pay to keep positions open; under neutral circumstances the indicator typically ranges between 6% and 12%, with longs paying. Analysts said a lack of confidence in leverage flows is not necessarily a definitive bearish signal.

Concerns about waning institutional demand were highlighted by outflows from US-listed Ether spot ETFs, which held over $17 billion in ETH and saw $230 million in net outflows on Friday, reversing a prior week that averaged $96 million in net inflows. The report also noted companies that accumulated ETH as a reserve strategy are facing heavy accounting losses, citing Bitmine Immersion (BMNR US) and Sharplink (SBET US).

Options markets showed traders paying an 11% premium for downside protection—the highest in seven weeks—while multiple ETH price rejections at $3,400 and declining on-chain metrics, including a 20% drop in network fees versus baseline per Nansen, signal softer demand.

Key Topics

Crypto, Ether, Spot Etfs, Funding Rate, Liquidations, Options Skew