Ethereum Slides to $1,800 – Bearish Data Triggers Investor Panic
The market‑wide sell‑off is being driven by a confluence of weak on‑chain metrics, a surge in futures liquidations and continued outflows from Ether‑linked exchange‑traded funds.
Key Takeaways
- Futures liquidations: Roughly $224 million in leveraged long positions were wiped out after a 9 % dip in ETH price.
- On‑chain activity: Total Value Locked (TVL) fell to $51 bn, the lowest level since May 2025, while weekly chain fees dropped to $13.7 mn.
- Derivatives pressure: The put‑to‑call volume premium on Deribit spiked to 2.2 ×, and the 30‑day options delta skew sat at +18 %, indicating strong demand for downside protection.
- ETF outflows: U.S. Ether ETFs recorded $405 mn of net withdrawals since 11 Feb, cutting assets under management to $12.4 bn.
- BTC correlation: ETH’s 20‑day price correlation with Bitcoin has remained above 95 % for three consecutive weeks, amplifying the effect of Bitcoin’s recent weakness.
Market Overview
On Tuesday, Ether (ETH) breached the $1,800 threshold, a level that has held as a tentative floor over the past two weeks. The move erased roughly $224 million in leveraged bullish positions within a 48‑hour window, representing the largest wave of futures liquidations since late‑2024.
The price slide, a 14 % decline over the last ten days, follows a broader bearish sentiment that has been building across the crypto ecosystem. While ETH remains 63 % below its all‑time high, the current environment is being shaped by three interrelated forces:
1. Derivatives Market Stress
- Put‑call dynamics: From Monday through Saturday, the market showed a near‑balanced demand for put and call options. On Tuesday, the put‑to‑call volume ratio surged to 2.2 ×, signaling a rapid shift toward hedging rather than speculative buying.
- Delta skew: The 30‑day options delta skew rose to +18 %, meaning put contracts traded at a noticeable premium over calls. This premium reflects traders’ heightened concern over further downside risk.
2. Slumping On‑Chain Fundamentals
- TVL contraction: Ethereum’s total value locked slipped to $51 bn, the lowest figure recorded since May 2025. The decline points to reduced capital flowing into decentralized finance (DeFi) protocols.
- Fee earnings: Weekly chain fees fell to $13.7 mn in the past month, a stark contrast to the $33 mn average observed in the latter half of 2025. Lower fees suggest diminished network usage and weaker demand for transaction processing.
3. Institutional Capital Withdrawals
- ETF outflows: Ether‑focused exchange‑traded funds in the United States have experienced $405 mn of net outflows since 11 Feb, trimming total assets under management (AUM) to $12.4 bn. The exodus coincides with a surge in gold ETF inflows, indicating a broader shift toward traditional safe‑haven assets.
- Co‑founder sales: Recent disclosures revealed that Ethereum co‑founder Vitalik Buterin sold $7 mn worth of ETH, a move that, while planned as part of a charitable pledge, added a negative tone to market sentiment.
Correlation with Bitcoin
Ethereum’s price trajectory continues to mirror Bitcoin’s movements. Over the past three weeks, the 20‑day price correlation between ETH and BTC has stayed above 95 %, meaning that any weakness in Bitcoin’s market dynamics is quickly reflected in Ether’s price action. As Bitcoin struggles to maintain its recent highs, the mirrored decline aids the bearish pressure on ETH.
Outlook
Analysts caution that the current metrics—especially the elevated put‑call premium, sustained high correlation with Bitcoin, and the persistent outflow from ETFs—suggest that the $1,800 floor may be tested further. However, the market remains sensitive to on‑chain developments; a rebound in DeFi activity or an improvement in network fees could provide a short‑term rebound.
For now, professional traders appear to be adopting a defensive stance, prioritizing risk mitigation over speculative exposure. Until derivatives indicators normalize and on‑chain fundamentals show signs of recovery, the probability of further downside for Ether remains a salient risk factor.
This article is intended for informational purposes only and does not constitute investment advice. Readers should conduct their own research before making any trading decisions.
Source: https://cointelegraph.com/news/eth-bounces-off-1-8k-as-multiple-ether-price-metrics-point-to-prolonged-weakness?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
