Ethereum breaks down! – THESE signals hint at more pain ahead

• Ethereum breaks as selling pressure surges across futures markets and funding flips negative.
• RSI near oversold, CVD red, and high Open Interest indicate that strong bearish momentum may persist.

Ethereum [ETH] just slipped below its comfort zone, and traders are feeling the heat.

At press time, ETH was hovering near $2.2K, breaking out of its recent trading range as rising geopolitical tensions in the Middle East shake broader markets.

Futures traders are already reacting, and if current momentum persists, this may signal more than a brief dip—it could mark the beginning of a deeper correction.

Futures market turns hostile

Ethereum futures traders are clearly leaning bearish.

The Taker Buy/Sell Ratio has plunged to 0.93 – its lowest in over a month – showing a sharp rise in sell-side aggression.

The chart reveals that this metric has been consistently under 1 since Friday, aligning perfectly with ETH’s breakdown below $2,300.

Source: CryptoQuant

Sell-side pressure is intensifying, eroding market sentiment and suggesting a continued downward trajectory for Ethereum. 

With buyers hesitant and no strong bids to absorb the decline, futures market signals point to further downside risk.

Leverage with dissolving confidence

Despite Ethereum’s price drop, Futures Open Interest (OI) remained elevated at $28.19 billion. On the surface, that might suggest traders are staying in the game, but context matters.

Source: CoinGlass

The persistent OI, paired with a falling Taker Buy/Sell Ratio, points to a market dominated by short-side conviction rather than bullish optimism.

As prices slide and volatility goes higher, this build-up of leveraged positions could become fuel for further downside. Unless bulls step in with strong buy-side volume, Ethereum’s open interest may unwind.

Red across the board

Source: TradingView

At the time of writing, Ethereum’s daily RSI was scraping oversold levels at 34, with no signs of reversal, so momentum still favors sellers.

Meanwhile, CVD remained deep in the red, reinforcing that aggressive market selling is the dominant force behind the recent breakdown.

Source: CoinGlass

On top of that, ETH’s Funding Rates have flipped negative across most exchanges, indicating that shorts are paying to keep their positions open.

The downtrend is well-supported, and any recovery attempt may struggle to gain traction in the near term.