Ethereum (ETH) hovered around the $1,740 mark while derivatives markets continued to display weakness after the recent correction, and traders remained cautious following a brief dip below $1,600 in early June.
Derivatives Market Dynamics
Open interest in Ethereum futures fell to 13.64 million ETH by Sunday, the lowest level recorded since early May. A modest rebound emerged after Monday’s price moved back above the $1,700 threshold, signalling a tentative recovery.
From May 28 to the present, futures markets have seen an outflow of roughly 2 million ETH, indicating that leveraged participants are adopting a defensive stance. Funding rates over the past fourteen days have swung between negative and positive values, reflecting a lack of clear dominance by either bullish or bearish traders.
Spot Market Activity
Spot exchange reserves experienced a slight decline over the last forty‑eight hours, suggesting limited buying pressure from investors. Meanwhile, U.S.-based spot Ether ETFs posted a second straight day of inflows, attracting $9.6 million on Tuesday.
Despite the modest uptick in ETF flows, the broader spot market data still points to tepid conviction among both retail and institutional investors.
Investor Sentiment and Outlook
Long‑position liquidations that swept the market at the end of May and early June appear to have left participants uncertain about the next direction. Neither retail traders nor large‑scale investors have demonstrated a decisive push, leaving the blockchain asset’s short‑term trajectory ambiguous.