Ether taker volume turns negative for first time in two months: Will ETH fall under $2K next?

Ether (ETH) futures on Binance exchange saw cumulative net taker sell volume of more than $2.84 billion over the past two weeks, highlighting a sharp rise in aggressive selling pressure. The net taker volume also flipped negative for the first time in two months, coinciding with weak spot demand and rising open interest, a combination that points to further price volatility. 

Ether futures buyers lose control to bears

Ether futures positioning on Binance changed sharply over the past two weeks. Data from CryptoQuant noted that the 24-hour cumulative net taker volume climbed to $2.8 billion on May 6 before falling to -$36 million by May 19, a swing of about $2.84 billion. The metric tracks the balance between aggressive buyers and sellers using market orders.

ETH cumulative net taker volume on Binance. Source: CryptoQuant

The weakness also spread into the longer trend. The 30-day moving average flipped negative earlier this month and now sits at -$113 million, the lowest reading since Feb. 24, when it stood near $153 million.

ETH net taker volume 30-day average. Source: CryptoQuant

At the same time, ETH's aggregated open interest rose to 4.82 million ETH from 4.5 million ETH even as the price declined 10% last week. This implies that ETH traders are still holding leveraged positions rather than closing them out. Aggregated funding rates also remained positive on the daily chart, currently near 0.004%.

This combination of data can increase the risk of liquidation if prices continue to fall. Positive funding means traders are paying to keep their long positions open, even as spot demand continues to weaken.

The ETH spot activity still shows the clearest pressure point. Ether’s spot cumulative volume delta (CVD) has fallen to negative $5.43 billion across exchanges, indicating sellers continue to outweigh buyers.

ETH price, aggregated open interest, funding rate, and spot CVD. Source: velo chart

With more than $1.2 billion in cumulative long positions at risk near $1,900, Ether remains exposed to elevated liquidation risk if downside momentum continues. 

At the same time, weakening spot inflows and a sharply negative cumulative spot volume delta indicate that sell-side pressure continues to outweigh buyer demand across the market. 

Related: South Korean funeral company records $33M unrealized loss on leveraged ETH ETFs

ETH inflows on Binance drive market focus

Crypto analyst Arab Chain said the Ether supply on Binance reached its highest level since February. Binance’s ETH exchange supply ratio rose to around 0.0326 in May while ETH traded near $2,370. The ratio measures the amount of ETH held on Binance relative to the broader circulating supply.

The analyst explained that while more coins moving onto exchanges often indicate traders are preparing to trade, hedge, or adjust positions, it does not directly translate into selling.

Ether exchange supply ratio on Binance. Source: CryptoQuant

Meanwhile, market analyst MorenoDV pointed to a major concentration of ETH inflows. Binance absorbed 225,000 ETH of the 250,000 ETH sent across all exchanges, accounting for 90% of last week's total deposits.

MorenoDV noted that Binance shifted to net outflows of roughly 12,000 ETH, while the total exchange flows remain near net inflows of 20,000 ETH. The analyst said, 

“The key takeaway is that ETH’s recent drawdown was not supported by a broad, uniform exchange inflow structure. It was led by a very specific concentration of flows on Binance. That matters because Binance is one of the deepest liquidity venues for ETH.” 

Related: Ether pullback was ‘attractive opportunity’ for 71,672 ETH buy: Bitmine’s Lee