Ethereum Price May 7, 2025: Selling Pressure Increases, Risk of Deep Decline

Despite the 4% opening price increase in the past 24 hours, market sentiment remains bearish, as shown by the Taker Buy Sell Ratio falling to 0.866, its lowest level since early February. This shows that short positions are dominating the derivatives market.

Data from Coinglass shows that an increase in total open interest (OI) accompanied by falling prices is a sign that new money is pouring into short positions.

Meanwhile, on the CME, open interest fell more than 5%, indicating that many institutional traders, especially asset managers and retail traders, have closed positions. In contrast, hedge funds have increased their short positions sharply since mid-April, a move that is believed to be related to preparations for the Pectra upgrade.

However, in the spot market, sentiment is bullish. Over 63,690 ETH was withdrawn from exchanges in the last 24 hours, reflecting long-term investor confidence. Expectations for the Pectra upgrade, which is expected to roll out within the next 24 hours, are a key supporting factor.

Pectra will bring many changes to the Ethereum Layer 1 network, such as expanding the blob data space from 3 to 6 per block, increasing the staking limit from 32 ETH to 2,048 ETH, and especially supporting smart wallets, allowing users to make funding transactions, pay gas fees with ERC-20 tokens, or restore wallets in batches.

Technically, if ETH fails to sustain the support zone around the 14-day EMA and the 50-day SMA and fails to break the current symmetrical triangle pattern, the price could fall further towards the $1,688 mark.

In the short term, the ETH market is caught between two forces: selling pressure from futures traders and long-term expectations from spot investors ahead of the landmark upgrade.

Ethereum Price Forecast May 7, 2025: Selling Pressure Increases, Risk of Deep Drop to $1,688 If Important Technical Levels Fail to Hold

Ethereum (ETH) is currently facing significant bearish pressure as it continues to break key technical support levels. Over the past 24 hours, the market has recorded approximately $50.93 million in ETH futures liquidations, with $39.78 million coming from long positions and $11.15 million from short positions, according to data from Coinglass. This suggests that bullish traders have suffered heavy losses as ETH prices have fallen unexpectedly.

ETH has fallen below $1,800, losing support from the 14-day EMA, 50-day SMA, and the symmetrical triangle support, a key technical pattern. If it fails to recover and sustain above these levels, ETH could slide to the next support zone around $1,688.

The RSI indicator is currently hovering around the neutral level, while the Stochastic Oscillator indicator has turned down quickly from the overbought zone, reflecting a clear weakening of short-term demand. This suggests that the risk of further decline is increasing.

However, if the bulls can push the daily candle close back above the symmetrical triangle pattern, the bearish scenario will be invalidated and ETH could return to test the $1,800 region and beyond amid bullish sentiment from the upcoming Pectra upgrade.

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Source: https://baonghean.vn/gia-ethereum-ngay-7-5-2025-ap-luc-ban-gia-tang-rui-ro-giam-sau-10296731.html