ETH open interest is low, and funding rates are negativeAnother factor weighing Ether’s price down is the lack of enthusiasm in its derivatives market, evidenced by low open interest and negative funding rates. Open interest (OI)—the total number of outstanding futures and options contracts—remains low, indicating reduced trader participation and speculative activity.Currently, at $16.7 billion, the metric is 48% below its peak of $32.3 billion witnessed on Jan.24.
A similar scenario was witnessed in November 2022, when the metric fell below the price before Ether dropped 35% following the FTX collapse. Now that a similar scenario is playing out, the current setup loosely echoes those prior bearish continuation phases, with ETH price at risk of a deeper correction. Spot Ethereum ETF flows remain weakSpot Ethereum ETFs continue to weaken, with more than $3.3 million in net outflows on April 8.
There’s no indication that the factors weighing on Ether’s price — such as declining network activity and low demand for its spot ETF products — will reverse anytime soon. While this doesn’t guarantee that Ether’s price will remain in an extended downtrend, the technical setup suggests that ETH's price may bottom at $1,000.
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Author / Journalist: Cointelegraph by Nancy Lubale
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