Overview:

• The recent Core Producer Price Index (PPI) shows a 0.8% monthly increase, reinforcing ongoing inflationary pressures in the wholesale market.

• Ethereum price faced rejection near the upper consolidation boundary at $2,149 and declined slightly last week.

• High inflation rates reduce the probability of an interest rate reduction from the Federal Reserve in the near term

Ethereum has recovered sharply from its recent dip below $1,800, reclaiming the $2,000 level that many traders view as a key support zone. At press time, ETH is trading near $2,002.18 with a 3.20% increase over the past 24 hours. However, on-chain and derivatives data suggest the rebound may be occurring amid broader structural repositioning.

Large Holders Reduce Exposure

In a post on X, Joao Wedson, a crypto analyst, said that there has been a major behavioral shift among  Ethereum’s large holders.

He also suggests that something deeper may be taking place beneath the surface. Wedson points out that wallet addresses holding between 100,000 and 1,000,000 ETH have significantly reduced their holdings over the past 90 days, showing that big holders are selling or moving large amounts of ETH. 

This represents some of the largest non-exchange holders, including early investors, institutions, and private entities. More importantly, the reduction is occurring from non-exchange wallets rather than exchange reserves. A rise in exchange balances typically signals the intent to sell.  

In this case, large private wallets are trimming positions, indicating active exposure reduction rather than simple fund transfers.

Macroeconomic Pressure Intensifies

The recent Core Producer Price Index (PPI) showed a 0.8% monthly increase, reinforcing ongoing inflation problems at the wholesale market. 

High inflation rates reduce the probability of interest rate reduction from the Federal Reserve in the near term, creating more restrictive conditions for risk-based financial assets. 

Geopolitical instability has created additional uncertainty. Escalating tensions between the United States and Iran triggered sharp weekend volatility. 

Derivatives Market Contracts by Nearly 2 Million ETH

Ethereum Open Interest (OI) across exchanges declined from 7.79 million ETH to 5.8 million ETH, a decline of around 2 million ETH in leveraged positions.

The contraction is even more pronounced in terms of dollars. Binance’s notional Open Interest dropped from over $12.6 billion to $4.1 billion, while Bybit’s OI declined by roughly two-thirds to $1.9 billion. 

This represents over $8 billion in cumulative exposure removed from major platforms. Such deleveraging signals a decline in speculative appetite.

Also Read: Ethereum News Today: ETH Whales Turn Red as Vitalik Pushes Core Overhaul 

Technical Structure

Ethereum price faced rejection near the upper consolidation boundary at $2,149 and declined slightly last week. If ETH continues to correct, it could extend the decline toward the lower consolidation range at $1,747. 

ETH’s momentum indicators show mixed signals: the RSI points to bearish pressure, while the MACD suggests a potential recovery could happen.

On the other hand, if ETH maintains its rebound, it could extend the advance toward $2,149.