Ethereum (ETH) Price Under Pressure: Record Open Interest Suggests Bullish Reversal Brewing

Key Highlights

• Exchange reserves surged by 623,000 ETH within a single week, signaling mounting sell-side pressure in spot trading venues.
• Ethereum currently trades between $2,220 and $2,260 after breaking beneath its 50-day EMA, with critical support sitting at $2,211.
• US-listed ETH ETFs recorded consecutive daily outflows totaling $130.6 million, while Coinbase sentiment indicators turned bearish.
• Derivatives markets show strength with open interest climbing to an unprecedented 15.5 million ETH, accompanied by the longest positive funding rate sequence since early 2025.
• Network data from Santiment reveals Ethereum posted its most substantial realized profits in three weeks despite declining prices.

Ethereum (ETH) faces considerable downward pressure during the current trading period, maintaining a narrow range between $2,220 and $2,260 as market participants increase their selling activity across both spot exchanges and futures platforms.

Between May 5 and May 13, centralized exchange holdings expanded by 623,000 ETH. Such influxes generally indicate that investors are transferring their assets to trading platforms with the intention of liquidating positions.

Large wallet addresses are spearheading the distribution phase. Addresses containing between 10,000 and 100,000 ETH collectively shed 390,000 ETH starting May 7. Data from CryptoQuant reveals this represents the most substantial weekly sell-off from this cohort since the final days of March.

Retail-sized wallets in the 100–1,000 ETH category continued their selling pattern, disposing of approximately 110,000 ETH throughout the past seven days. Conversely, medium-sized addresses holding 1,000–10,000 ETH diverged from this trend, accumulating roughly 67,000 ETH during the identical timeframe.

American market sentiment appears particularly fragile. The Coinbase Premium Index, which tracks price disparities between Coinbase and Binance, has remained in negative territory. Ethereum-focused ETFs contributed to the pessimistic atmosphere, experiencing $130.6 million in cumulative net withdrawals across two trading sessions according to SoSoValue tracking.

Blockchain analytics provider Santiment identified a peculiar on-chain development this week. While ETH declined approximately 5.5% across three consecutive days, network data captured the most significant realized profits in a three-week span — registering $74.58 million in gains.

Understanding Profit Realization During Price Declines

The @SantimentData analyst account clarified this seemingly paradoxical situation. Investors who acquired ETH throughout February and March — when prices remained under $2,000 — continue to hold unrealized gains despite recent pullbacks. Many are opting to secure these profits immediately rather than risking further price deterioration.

The analytics firm highlighted increased on-chain activity volume, with 4-hour chart intervals displaying significant price consolidation around the $2,241 level. Higher transaction counts generate more profit-and-loss realization events, which elevates network-wide totals even when individual profit margins remain modest.

Santiment recommended market participants maintain vigilance without adopting an overtly pessimistic stance, monitoring for deeper realized losses as a potential indicator that the distribution cycle is nearing completion.

Critical Price Levels Under Observation

From a chart analysis perspective, Ethereum is presently positioned beneath its 50-day EMA at $2,273, its 20-day EMA near $2,307, and its 100-day EMA around $2,352. This trio of exponential moving averages creates a consolidated resistance barrier that has repeatedly rejected upward momentum.

The Relative Strength Index registers near 45, while the Stochastic indicator hovers around 12 — suggesting deeply oversold market conditions.

Primary support exists at $2,211, with a more robust foundation established around $2,107. Should these thresholds fail to hold, market analysts identify $1,909 and $1,741 as subsequent demand zones.

However, not all market observers maintain a bearish outlook for the immediate term. ETH futures open interest climbed to an all-time high of 15.5 million ETH, while funding rates have sustained a positive pattern unseen since January, suggesting derivatives traders are aggressively purchasing price dips.

ETH witnessed $95.6 million in forced liquidations during the previous 24-hour period, with $84.3 million originating from leveraged long positions.

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