Ether (ETH) is under pressure, rebounding to $1,800 amidst concerning signals from multiple market metrics. Despite a brief recovery, the cryptocurrency faces ongoing challenges as it grapples with declining onchain activities and substantial futures liquidations.
Recent data reveals that futures liquidations in the Ethereum market hit $224 million following a 9% decrease in price, coinciding with onchain activity reaching a 12-month low. The high correlation between Ether and Bitcoin, coupled with significant withdrawals from exchange-traded funds, signals potential further declines.
Over the past 10 days, Ether's value has plummeted by 14%, erasing leveraged bullish positions worth $224 million within two days. Traders are on edge, with options and futures data reflecting a lack of confidence. This unease is further compounded by steady outflows from Ether spot exchange-traded funds, indicating a fragile support level at $1,800.
The shift in market sentiment is evident from the ETH put-to-call volume premium, which surged to 2.2x on Tuesday, indicating a growing demand for downside protection. The options delta skew also highlighted this trend, with puts trading at a significant premium, reflecting a market eager to hedge against potential losses.
Furthermore, the Ethereum network's total value locked (TVL) has dropped to $51 billion, its lowest since May 2025. This decline has led to a reduction in network fees, which have fallen to $13.7 million over the past month, a stark contrast to the $33 million average in late 2025. These figures suggest a waning demand for Ethereum's data processing capabilities.
Adding to the bearish outlook, Ethereum co-founder Vitalik Buterin's recent sale of $7 million in ETH has contributed to the negative sentiment. Although these sales were anticipated and earmarked for privacy-centric and open-source projects, the timing has added to market anxieties.
The situation is exacerbated by substantial outflows from Ether ETFs, which have seen $405 million in net withdrawals since February 11, reducing total assets under management to $12.4 billion. Meanwhile, gold ETFs have attracted significant inflows, with $822 million added in the week ending February 20, as gold prices surged past $5,150.
Despite the bleak indicators, Ether's struggles are not definitive. However, the market's mood remains bearish, particularly with whales and market makers bracing for further downturns. Ether's price remains closely tied to Bitcoin, with a 20-day correlation exceeding 95% for the past three weeks.
The recent drop to $1,800 has left traders uncertain about the underlying factors of the ongoing crypto bear market. This uncertainty prompts many to sell at a loss, and the trend might persist until stability returns to derivatives metrics. Until then, the possibility of further declines in Ether's price remains a concern.