Ethereum’s price entered a sustained downtrend recently, declining notably even as on-chain data shows active buying interest in the spot market. The cryptocurrency dropped to a local low near $2,020 after losing over 6% following a period of consolidation earlier in the week.
On-chain analysis reveals that despite continued aggressive purchases in the spot market, Ethereum’s price has not found a foothold to reverse its bearish trajectory. Data from CryptoQuant indicates that spot buyers dominate with more executed buy orders than sells over the past weeks. However, spot trading volume has contracted sharply, falling by more than 45% since early May, weighing on price support.
The derivatives market presents a nuanced picture. Open interest in Ethereum futures has remained largely flat, signaling a lack of strong conviction from traders betting on price direction. Meanwhile, futures cumulative volume delta suggests that longs still outnumber shorts, and funding rates have remained positive, indicating that long holders pay premiums to short sellers to maintain their positions.
Furthermore, exchange flow data underscores a key dynamic. Ethereum withdrawals from exchanges exceed deposits by approximately 80,000 ETH, a pattern generally viewed as bullish since it signals coins moving into personal wallets rather than being poised for sale. Despite this, the price continued to decline, pointing to an overall supply glut overpowering demand.
The current state suggests that Ethereum’s downward price trend persists because available supply for selling outpaces the buying pressure, even amid clear signs of strong spot accumulation and supportive futures activity. This imbalance undermines bullish momentum and keeps the price under pressure despite healthy market participation.