Ethereum Price Under Pressure Amid Elevated Leverage and Positive Funding Rates

Market conditions in the Ethereum market remain fragile, with analysts warning of potential downside risks.

Elevated leverage and positive funding rates have created a weakening price structure, according to CryptoQuant analyst PelinayPA. The estimated leverage ratio remains relatively high at around 0.74, while the funding rate has remained mostly in positive territory since mid-April.

Fellow analyst Amr Taha noted that the leverage build-up came alongside heavy sell-side pressure, making the setup more fragile than a clean bullish open-interest expansion.