Ethereum's Price Decline Continues Despite Aggressive Buying

Ethereum's recent price decline has been puzzling, given the presence of aggressive buying in both spot and futures markets. However, data from CryptoQuant reveals that this buying power is being absorbed by a larger supply of sell orders, resulting in a continued downward trend for the cryptocurrency.

The spot volume has contracted significantly over the past 12 days, with a decline of 45.4% in ETH traded and a corresponding drop in dollar value. This contraction in trading activity suggests that market sentiment is not strong enough to support the price at current levels.

In derivatives markets, Open Interest remains relatively stable, but Futures are not validating a strong bullish expansion. The funding rates have also remained positive since May 11, indicating that longs continue to hold exposure despite the falling price.

The cumulative Exchange Netflow has been negative, with a net outflow of -80,507 ETH from exchanges, further indicating bearish pressure in the market. Until Ethereum recovers spot volume and breaks resistance, the dominant trend is likely to remain bearish.