Ether (ETH) remains under pressure after failing to break the $2,150 resistance level. Despite the decline, the total number of open ETH positions increased by approximately 350,000 ETH, suggesting that up-to-date low positions are entering the market.
With over $1.5 billion in bearish positions clustered above $2,150, a successful defense of the $2,000 support zone could trigger a piercing low squeeze and increased relief for ETH.
Overcrowded ETH trading could lead to an boost in support
ETH failed to recover $2,150 after falling below that value on May 17. Resistance capped the price from February through April, limiting a robust breakout.
As the price stabilized near $2,000, cryptocurrency trader Ardi said:
“The ETH price will soon reach sub-$2,000. We have already seen a -20% correction from the range highs, and the price is now completely outside the ascending channel.”
ETH/USD, single-day chart analysis by Ardi. Source: X
ETH futures data shows a more mixed setup during the current decline. Aggregate open interest has increased by approximately 350,000 ETH over the past day even though the price has dropped to $2,060. The discrepancy between price and OI suggests fresh low positions rather than long liquidations, resulting in a lower price.
Aggregate funding rates remained strongly positive this month at 0.0049%, showing that investors are still paying to maintain long exposure despite falling prices. The combination of growing open interest and positive funding means aggressive positioning on both sides for now.
ETH price, funding rate and open interest. Source: Velo chart
This may result in a rush for liquidity on both sides. The closest trading zone is $2,000. Long-leveraged distressed positions figure exceeds $1 billion, making it a critical level for near-term direction.
This setup leaves ETH open to a potential low position. A successful defense of $2,000 could force low positions in the liquidity pocket above $2,150 to be covered, where over $2.1 billion of short-term liquidity is concentrated, leading to an boost in aid.
ETH liquidation map. Source: CoinGlass
Related: Tom Lee Predicts Supercycle Amid Bitmine’s Biggest Ethereum Purchase in 2026
The share of ETH retail trading continues to decline
Since 2023, ether has steadily lost share from mid-sized holders, reflecting destitute confidence among retail investors. Wallets holding between 100 and 1,000 ETH controlled approximately 16.2 million ETH at their peak in 2023, but this number has since increased dropped to approximately 8.75 million ETH.
Ether balance at holder’s value. Source: CryptoQuant
Meanwhile, larger investors played a key role in Ethereum’s 2024 rally. The holdings of 1,000-10,000 ETH addresses increased to 15.8 million from 12.4 million ETH before the distribution began in October 2025. As of May 25, balances in this cohort dropped back to 12.7 million ETH, indicating reduced exposure after the rallies.
However, the largest holders of Ether continue to accumulate aggressively. ETH wallets holding between 10,000 and 100,000 ETH increased their balance by almost 30% over the last year, rising to 19 million ETH from 14.7 million ETH. The trend suggests that megawalls continue to absorb ETH supply even as the share of mid-sized holders declines.
Related: Ethereum Bull David Hoffman Explains Why He Sold His ETH
