Ethereum (ETH) has lost some of its upward momentum after nearing its all-time high, mirroring a broader correction across the cryptocurrency market. The second-largest digital asset by market capitalization briefly touched $4,776 last week, just shy of the $4,878 record set in 2021, before retreating.
CryptoOnchain noted that Ethereum’s futures trading frequency has entered what he describes as the “Many Retail” and “Too Many Retail” zones, thresholds that historically appear near the late stages of strong uptrends.
Additional indicators support this cautious outlook. The analyst highlighted Ethereum’s Futures Volume Bubble Map, which currently shows clusters of large red bubbles near recent price highs. These patterns, he said, have frequently preceded either sharp breakouts or rapid corrections when excessive leverage unwinds.
This contrasts with previous bull runs in 2020–2021 and early 2024, when funding rates spiked above 0.05–0.10, signaling overheated long positions.
“ETH just pushed above $4.2K, but funding is still sitting flat,” Woominkyu explained. “That suggests the rally has been driven more by spot buying rather than leverage.”
Featured image created with DALL-E, Chart from TradingView
