Ethereum Price Falls as Binance Funding Rates Hit 2026 High and ETF Outflows Continue

TLDR

Ethereum has fallen about 10% over the past week as spot demand weakened, exchange-traded funds posted continued outflows and leveraged long positions faced heavy liquidations. ETH tapped the $1,700 area before recovering slightly, while traders continued to watch the $1,825 and $1,500 levels as key zones on the chart.

The decline came even as Ethereum funding rates on Binance rose to their highest level since the start of 2026. The funding rate reached about 0.0087, showing that traders in perpetual futures were adding long exposure despite weak price action across the broader crypto market.

High positive funding rates usually show that long traders are paying short traders to keep positions open. In this case, the reading suggests that many traders were positioning for a near-term rebound, even as Bitcoin continued to fall and pressure spread across altcoins.

ETF Outflows and Holder Demand Weaken

Ethereum spot ETFs have now recorded 17 straight trading sessions of net outflows. The last day of net inflows was May 8, and the latest session showed about $52.94 million leaving the funds.

The outflow streak reduced total Ethereum spot ETF net assets to about $9.96 billion. The continued withdrawals show weaker institutional demand during the latest market decline, removing one of the main sources of steady buying from the ETH market.

Source: Cryptoquant

On-chain holder data also showed a sharp slowdown. Glassnode’s hodler net position change, which tracks monthly supply change for coins older than 155 days, peaked at 339,222 ETH on June 1. By June 3, the figure had fallen to 68,470 ETH.

That move represents an approximate 80% drop in two days. The data shows that long-term Ethereum holders slowed accumulation during the same period that ETF demand weakened, leaving the market more exposed to leveraged trading activity.

Leverage Builds as Liquidations Rise

The rise in Binance funding rates showed that traders were still leaning bullish through derivatives markets. CryptoQuant data showed Ethereum’s funding rate on Binance near 0.0087, its highest level since the beginning of 2026.

That positioning created added risk because crowded long trades can unwind quickly when price moves lower. Over the past 24 hours, about $368.63 million in Ethereum long positions were liquidated. Across the wider crypto market, total liquidations reached about $1.61 billion.

The liquidations added to selling pressure as positions were force closed. High funding during weak market conditions can leave the market vulnerable to further volatility, especially if Bitcoin fails to stabilize and traders continue using leverage to call a bottom.

Ethereum also recorded strong network activity during the market stress. The network processed $9.92 billion in transaction volume on June 2, the largest one-day spike in Ethereum activity in the past two months.

ETH Treasury Losses and Price Levels Draw Attention

Corporate Ethereum treasury activity also remained in focus. FG Nexus, a Nasdaq-listed Ethereum treasury company, bought 50,770 ETH for about $196 million between August and September 2025 at an average price of $3,860.

The company later began selling in November and has sold 36,025 ETH at an average price of $2,330, recovering about $83.92 million. Its cumulative losses on the Ethereum treasury strategy have now exceeded $85 million.

At the same time, Bitmine Immersion Technologies announced plans for an offering of 3 million shares of 9.50% Series A perpetual preferred stock. The company said proceeds may be used to acquire additional ETH, expand staking and validator infrastructure through MAVAN, fund working capital and repurchase common stock.

On the chart, Ethereum has pulled back to the lower boundary of its channel near $1,825. If that level holds, traders are watching for a possible rebound toward $2,070 or $2,360. A close below $1,825 would weaken that support and could point to a move toward $1,500.

Source: X

ETH also made a new yearly low after tapping the $1,700 zone. The next key support area remains around $1,500, which traders have identified as both the 2025 bottom zone and the 2018 all-time high area.

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