Ether risks further drop if $1,800 support fails

Analysts say Ether faces renewed downside pressure and must defend the $1,800 support level after a combination of elevated leverage, persistent positive funding rates and $695 million in outflows from U.S. spot Ethereum ETFs. Market indicators point to fragile conditions that could accelerate selling if key supports break.

CryptoQuant analyst PelinayPA reported an estimated leverage ratio around 0.74, funding rates that have remained mostly positive since mid‑April and a relative strength index near 31. The analyst noted that rising leverage and continued long positioning have coincided with falling prices and weakening momentum.

Amr Taha highlighted heavy sell‑side pressure during the recent leverage build‑up, citing Binance cumulative net taker volume near negative $744 million, the lowest reading since early April. Taha observed that new leverage entered while aggressive sellers governed flows, creating a setup driven more by derivatives positioning than by spot demand.

U.S.-listed spot Ethereum ETFs have recorded net outflows for a thirteenth consecutive day, totaling about $695 million. Thursday saw $121 million withdrawn, the largest single‑day outflow in two weeks. Analysts view the sustained withdrawals as reduced institutional interest in adding long exposure to Ether.

Price action has reflected those strains. Ether fell about 7% over three days and lost the $2,000 level, leaving the $1,800 to $1,750 zone as the next range traders are watching. Technical commentator Suraj Jha suggested a favorable entry around $1,700 to $1,800, while warning that a confirmed break below that band could reframe the market structure toward further declines.

Another analyst, Crypto Patel, described the technical setup as bearish until Ether reclaims $3,050 and said the pair needs to hold $1,750 to keep the longer‑term bullish case intact. Patel added that if $1,750 fails, a secondary accumulation area could appear roughly between $1,400 and $1,500.

Analysts note that a daily candlestick close below $1,750 could prompt additional selling first to the April low near $1,550 and, if that breaks, toward the 2022 macro low around $1,000. That path would imply losses of as much as about 47% from current levels.

Funding rates remaining positive indicate long positions still dominate futures books, which increases the risk of rapid moves if those positions are squeezed while price declines. Traders and portfolio managers will monitor derivatives metrics and ETF flows for signs of stabilization. The $1,800 to $1,750 zone is the next support band analysts cite; failure to hold it would shift attention to the lower accumulation ranges they have identified.