Ethereum analysts say ‘downside pressure’ remains as $1.8K becomes key Analysts warn Ether’s downside risks remain elevated as traders closely watch the $1,800 support zone for stability.
Market analysts say Ether (ETH) still faces “downside pressure” that could trigger another ETH price sell-off as traders shift their focus to support at $1,800
Key takeaways: – Ether faces downside pressure as elevated leverage and positive funding rates amid falling prices signal fragile market conditions. – Analysts say ETH must hold the $1,800-$1,750 support zone to avoid a deeper correction. Ether price metrics suggest downside risks remain Analysts have highlighted several reasons for Ether’s potential to drop lower, including an elevated estimated leveraged ratio and positive funding rates amid a “weakening price structure,” according to CryptoQuant analyst PelinayPA. The chart below shows that Ether’s estimated leverage ratio (yellow line) remains relatively elevated at around 0.74.
Related: Ether bears at risk of $2B squeeze as short positions build around $2K The funding rate (blue line) has remained mostly in positive territory since mid-April, meaning long positions still dominate the market. Meanwhile, the RSI (purple line) is closer to the oversold zone at 31 and has not yet “produced a convincing recovery signal,” the analyst said in a Friday QuickTake analysis. “Leverage remains elevated and long positioning is still dominant, yet price continues to struggle as the RSI reflects weakening momentum,” the analyst said, adding: “Overall this combination suggests that short term downside pressure in the ETH market still remains the dominant structure.” ETH: Funding rates and leveraged ratio Under normal market conditions, rising leverage and increasing funding rates are usually supported by strong price expansion. However, in this case, leverage remains high while price continues to record lower lows. “But the key signal is that this leverage build-up came alongside…