Ethereum is trading below $1,700 after a roughly 28% decline from recent highs, posting its weakest level since early 2023. The drop comes alongside a sharp contraction in open interest on several major exchanges, signaling a broad retreat in leveraged positions.
Open interest craters on Gate.io, Bybit
Open interest on Gate.io fell from $4.84 billion on May 7 to $2.68 billion by June 9 — a 45% reduction in just over a month. That $2.68 billion figure matches the exchange's open interest level from April 11, 2025, erasing roughly a year's worth of growth. Bybit shows a similar pattern: its open interest now sits near $805 million, virtually identical to the $795 million reading from April 9, 2025.
The speed of the unwind is notable. Both exchanges saw their open interest decline by roughly 44-45% from local peaks, suggesting a coordinated flush of leveraged longs rather than a gradual deleveraging.
Binance bucks the trend
Binance, the largest venue by volume, hasn't followed suit. Its Ethereum open interest remains around $2.76 billion — flat compared to prior weeks. But the funding rate on Binance is negative at roughly -0.0038%. A negative funding rate means short positions are paying longs to keep the book balanced. That's defensive positioning, not bullish conviction. It implies traders on the biggest exchange are hedging or betting against a quick recovery, even if they haven't closed their positions.
Price levels that matter
Ethereum is currently changing hands near $1,670, below the February 2026 lows and beneath all major weekly moving averages (50, 100, and 200-week). The recent low near $1,500 is the most important support level on the weekly chart. A weekly close below that could open the floor to the $1,300-$1,400 region, according to the technical structure.
The price action since the rejection from the $4,800 cycle peak has been a textbook sequence of lower highs and lower lows. No reversal pattern has formed yet. Until open interest on exchanges like Bybit and Gate.io shows a bottom — or Binance starts carrying a positive funding rate — the path of least resistance remains down.
