Ethereum futures open interest dropped to 13.64 million ETH on Sunday, its lowest level since early May. The decline comes as funding rates turned negative for the first time in nearly a month, and the asset trades below all its major exponential moving averages.
Open interest keeps sliding
Since May 28, open interest has fallen by roughly 2 million ETH. The steady drop suggests traders are closing leveraged positions rather than adding new ones. Sunday's 13.64 million mark is the lowest since the first week of May, when open interest briefly touched similar levels before recovering.
Funding rates flip negative
After nearly a month of positive readings, Ethereum funding rates turned negative following the June 5 correction. Over the past two weeks, rates have fluctuated between positive and negative — a sign of indecision among perpetual swap traders. Negative funding means shorts are paying longs, which can sometimes precede a squeeze, but the broader trend remains cautious.
Price stuck below key EMAs
Ethereum is trading below its 20-day EMA near $1,794, the 50-day EMA around $1,955, and the 100-day EMA near $2,108. That triple whammy of resistance levels has kept any rally attempts in check. Immediate resistance sits at $1,794, followed by $1,806 and $1,909. On the downside, support levels are at $1,524, $1,405, and $1,156.
Reserves dip, but not by much
Exchange reserves have declined modestly over the past two days, reversing part of the increase from last week. The move is small, but it suggests some holders are pulling ETH off exchanges — often seen as a mildly bullish signal. Still, the RSI has climbed toward the mid-50s, indicating selling pressure is weakening. Whether that's enough to push price back above $1,794 is the open question.
