Ethereum Lacks Behind: Raises a Key Question for Portfolios

Ethereum struggled to keep pace this week. While Bitcoin held its range, ETH closed lower, reinforcing a pattern of relative underperformance. The move wasn’t dramatic, but it wasn’t encouraging either. For investors, this was a week that clarified pressure points and not direction in Ethereum’s market structure.

Lower Close, No Breakdown

Ethereum opened the week near $3,063, traded between $2,773 and $3,178, and closed around $3,030. Marking a weekly decline of roughly 3%. The candle closed closer to the lower end of its range, indicating persistent selling pressure into the close rather than a late-week recovery.

In terms of Ethereum’s weekly structure, it didn’t experience a sharp breakdown. However, the downside move unfolded in stages, with intraday rebounds failing to sustain. This behavior points to controlled weakness, not panic.

Some analysts point out how liquidation imbalance shows how leveraged positioning around ETH remains highly sensitive. Where modest price moves could trigger forced liquidations on either side. This would amplify short-term volatility without necessarily confirming a trend shift.

Technical Context: Weakness Continues

Momentum indicators continue to reflect pressure. The weekly MACD remains negative, with the histogram printing deeper below zero, which confirms that downside momentum hasn’t reset yet.

Unlike BTC, Ethereum hasn’t shown clear signs of momentum slowing down, even though selling has remained controlled. Moreover, moving average signals reinforce this perspective, given that short and medium-term averages remain overhead resistance.

Oscillators largely sit in neutral territory, suggesting Ethereum is not oversold, but it’s also not positioned for an immediate relief move without a catalyst.

Long Bias With Thin Support

Derivatives positioning leaned net long across major venues, with long and short ratios elevated, particularly among top traders. However, this long bias didn’t coincide with expanding open interest. Which indicates existing exposure instead of fresh leverage being added.

Liquidation data shows limited stress. While long liquidations exceeded shorts over short timeframes, there wasn’t any sharp liquidation, which reinforces the view that leverage was reduced incrementally and not forcefully.

Spot flow data over the seven-day window showed net outflows of approximately $290M. Confirming that spot demand hasn’t returned in volume. On the other hand, liquidity was enough to prevent huge selling, but not strong enough to absorb sustained pressure.

Bullish Potential

An optimistic approach would involve Ethereum reclaiming key resistance levels with improving spot volume and tightening spreads. A sign of renewed participation.

A sustained weekly close back above recent highs, paired with expanding open interest and declining sell pressure, would allow Ethereum’s structure to repair.

Ethereum closed the week under pressure but not under stress. Structure remains intact, yet momentum and flows continue to work against it. Until spot demand improves, ETH is likely to remain reactive rather than leading, with direction dictated by liquidity instead of conviction.

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