Ethereum [$ETH] Price action was in a long-term downtrend, but has recovered 8.05% last week and 4.9% in the last 24 hours only. Yet, according to data from Farside Investors, Ethereum spot ETF flows since June 17, 2026 have measured a negative result. $358.3 million.
These persistent outflows highlighted the bearish market sentiment behind the leading crypto altcoin. It lost two major support levels in 2026: the $3.2k and $2k levels.
AMBCrypto reported that Ethereum, trading at $1.5kwitnessed strong bearish positioning, but also warned of a possible short squeeze.
The buy-sell taker ratio has returned above 1 over the last two trading days. The measure’s 7-day moving average has also returned above 1. This shows that recent gains were partly due to aggressive buyer orders in the perpetual swaps markets.
Open Interest also increased slightly. Increased speculative interest and buyer aggressiveness could help cause a short-term squeeze in the coming days. However, if Open Interest begins to slow again, it would indicate that the rebound is due to the unwinding of short positions rather than sustained demand.
The Dilemma for Long-Term Ethereum Investors
Ethereum MVRV extreme deviation price bands use the all-time MVRV average and degrees of deviation from it to form bands. These bands act as dynamic support/resistance levels.
Right now, the lowest level of the group, the -1.0σor one standard deviation below the mean, $1,549served as support.
Crypto analyst Ali Martinez highlighted in an article on X that July started with a buy signal on the monthly time frame of the TD Sequential indicator.
In September 2022 and March 2025, when the same monthly buy signal broke out, Ethereum rallied. 235% and 182%respectively.
ETF flows and general market sentiment did not give the impression that a major market bottom was forming. Only time will confirm whether a deeper withdrawal awaits us.
Final summary
- The increase in the buy ratio of Ethereum takers on perpetual markets and Open Interest signaled increased speculative interest in the short term.
- $ETHSpot ETF flows have been negative over the past two weeks, highlighting low investor conviction.