Ethereum Funding Rates Form Death Cross, Hinting at Bearish Trend

A recent technical analysis of Ethereum’s funding rates has revealed a potential bearish signal for the cryptocurrency market.

Ethereum Death Cross in Funding Rates May Signal Bearish Trend

An analyst has revealed that Ethereum (ETH) formed a death cross in funding rates, a metric that tracks the periodic fee exchanged between long and short traders on the derivatives market. A positive funding rate indicates a bullish sentiment, while a rate below zero suggests a bearish mentality among derivatives traders. The death cross, a technical pattern where a short-term moving average crosses below a long-term moving average, may hint at further bearish momentum for Ethereum.

Ethereum Faces Selling Pressure with Limited Price Support

Ethereum ($ETH) is experiencing a significant decline in price. According to Glassnode, there is considerable downward pressure on Ethereum, and the current price level has limited support. The crypto market intelligence firm also noted on social media that Ethereum’s Cost Basis Distribution indicates limited support near the current price. Addresses with a cost basis at $1.8K have not re-engaged, which helps explain why this level failed to hold during the recent sell-off.

ETH May Hit $1,200; Analyst Suggests Buy Zone

Ethereum (ETH) has fallen by 1.1% in the past 24 hours, trading just above $1,800. Analysts suggest the recent rally may have been a dead-cat bounce, and ETH has posted the steepest losses among the top five cryptocurrencies in 2025, down 45.4% year-to-date. The network’s struggle to remain competitive has pressured the price, with rival smart contract platforms offering lower fees and faster execution speeds. Crypto trader Big Cheds, who has more than 300,000 followers, has pointed to the $1,200 level as a critical support and potential buy zone for ETH if the current downtrend continues.

Ethereum Battles Whales and Resistance

Ethereum [ETH] has faced significant selling pressure from whales, with large derivative traders at risk of massive liquidation losses if ETH drops further. In the past week, ETH declined by 12.75%, and market sentiment has turned increasingly bearish. A potential liquidation cascade could exacerbate the sell-off, causing a demand squeeze and sending ETH’s price plummeting. The asset’s price is threatened by massive supply and selling pressure.