Foreign media analysis suggests that after its recent sharp decline, Ethereum has re-entered the long-term support zone of $1500 to $1600. This range has repeatedly absorbed selling pressure and subsequently led to significant rebounds. However, current derivatives and technical indicators do not yet provide a clear signal that a bottom has been formed.

Falling back to the long-term support zone

The article mentions that ETH previously experienced a drop of over 22%, with the price once approaching $1560. The weekly chart shows that the current area remains a point where buying pressure has repeatedly occurred in the past; therefore, whether this area can be held in the short term will be crucial for future price movements.

From a technical perspective, the Relative Strength Index (RSI) is approaching oversold territory, suggesting that selling pressure may have eased somewhat. However, the MACD remains in a bearish zone and has not yet shown a convincing upward crossover. This means that while downward momentum has eased somewhat, it has not completely ended.

Funding fees turn negative

The article points out that Ethereum's funding rate, weighted by open interest, has turned negative, reflecting a more cautious outlook among leveraged traders and an increase in short positions. In the perpetual contract market, a negative funding rate typically means that the short seller is paying fees to the long seller, indicating an overall bearish market sentiment.

However, foreign media also emphasized that negative funding rates cannot be directly regarded as a reversal signal. They indicate weaker market sentiment rather than that prices have bottomed out. If short positions are too concentrated, a reversal covering may occur, but this still requires further price and trading signals.

Open interest declined

Another noteworthy data point is the continued decline in open interest. The article argues that the simultaneous decrease in open interest as prices fall typically indicates that leveraged funds are exiting the market, rather than simply a new round of active short selling accumulating.

This trend is closer to "deleveraging" or "phased clearing," and is common after a rapid cooling of market sentiment. It can sometimes create conditions for a subsequent recovery, but it does not equate to a trend reversal. If buying pressure fails to regain a foothold at key resistance levels, the market may continue to decline.

In summary, the article argues that ETH is currently more likely in the later stages of a bottoming process than having begun a new upward trend. In the coming weeks, whether buyers can hold the current support and push the price above key resistance will determine whether this area becomes the starting point of a rebound or merely a temporary pause in a downtrend.