Ethereum Leverage Drops to 11-Month Low as ETF Withdrawals and Weak US Demand Weigh on Price
Ethereum (ETH) derivatives leverage has dropped to its lowest level in 11 months as institutional capital flows out of spot funds and spot buying demand weakens. The estimated leverage ratio fell to 0.62 alongside declining open interest, indicating that traders are unwinding leveraged positions rather than taking on fresh risk during price moves.
The reduction in leverage comes as spot exchange-traded funds recorded a ten-session streak of net withdrawals, headlined by $85.4 million in single-day net outflows on Monday before a modest $24.84 million rebound on Tuesday. Additionally, negative net taker volume in perpetual futures shows market-order selling continues to top buying. While lower leverage reduces the likelihood of steep, sudden liquidation cascades, it also points to cautious institutional and retail demand, leaving ETH struggling to build steady upward momentum.
Traders are looking for signs of technical stability around the 50-day exponential moving average near $2,501. A sustained push past key resistance levels at $2,548 and $2,578 could open the door to higher targets at $2,636 and $2,781. Conversely, if selling pressure resumes, initial support sits near $2,413, with stronger support around $2,355 and the 100-day exponential moving average.
Key points
- Ethereum's estimated leverage ratio dropped to 0.62, reaching its lowest point since November 2025.
- US spot Ethereum ETFs saw a 10-day streak of net withdrawals, despite a minor $24.84 million inflow on Tuesday.
- Negative net taker volume and a discount on US exchanges reflect ongoing sell-side pressure in perpetual futures.
- ETH is holding near its 50-day moving average around $2,501, facing immediate resistance at $2,548.
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How we writeDisclaimerQuestions and answers
Why is Ethereum leverage falling?
Ethereum leverage is falling because traders are reducing derivative positions amidst persistent ETF capital outflows, weaker buying demand on US exchanges, and negative net taker volume in perpetual futures markets.
What are the key support and resistance levels for Ethereum?
Ethereum faces immediate resistance at $2,548 and $2,578, with potential targets at $2,636 and $2,781 if it breaks higher. On the downside, key support sits at $2,413, followed by $2,355 near its 100-day moving average.
How are spot Ethereum ETFs performing recently?
US spot Ethereum ETFs experienced 10 consecutive sessions of net withdrawals, including $85.4 million in outflows on Monday, before posting a modest $24.84 million inflow on Tuesday.