Ethereum OI Jumps +8.2% As Traders Chase The Pump: Leverage Fueling ETH Again

Ethereum is showing early signs of recovery after a dramatic sell-off on Friday that sent prices plunging to $3,450. The drop came amid what analysts describe as the largest liquidation event in crypto market history, wiping out billions in leveraged positions across major ￰0￱ bulls briefly lost control during the panic, ETH has since begun to stabilize, with renewed buying interest emerging near key demand ￰1￱ Reading: Bitmine Receives 23,823 Ethereum From BitGo As Institutional Accumulation Continues Onchain analyst Maartunn highlighted that leverage is once again building up on Ethereum, signaling that traders are returning to the market following the ￰2￱ to his data, open interest on ETH surged significantly over the past 24 hours — a sign that speculative activity is resuming as volatility ￰3￱ renewed leverage could set the stage for another decisive move, either fueling a short-term relief rally or inviting further liquidations if momentum ￰4￱ coming days will be crucial for Ethereum, as bulls attempt to reclaim the $4,000 level to confirm a sustainable ￰5￱ sentiment remains cautious but optimistic, with onchain data showing large holders and institutions continuing to accumulate ETH despite recent turbulence — a potential signal of long-term confidence in the asset’s ￰6￱ Returns to Ethereum: A Risky Revival In Market Activity According to Maartunn, Ethereum’s Open Interest has surged by +8.2% within the past 24 hours — a clear sign that leverage is flowing back into the ￰7￱ rapid rise comes just days after the largest liquidation event in crypto history, where overleveraged traders were wiped out during the sudden crash.

Now, it seems many are trying to “trade their money back,” reigniting short-term volatility and speculation across ￰8￱ notes that while these so-called “revenge pumps” often create strong intraday rallies, they rarely sustain long-term momentum. Historically, around 75% of similar leverage-driven recoveries tend to revert, leading to renewed pullbacks once liquidity and funding rates ￰9￱ about 25% manage to extend into lasting uptrends, typically when supported by fresh spot buying or renewed institutional ￰10￱ data underscores the precarious balance Ethereum currently ￰11￱ jump in Open Interest signals revived market participation, but also introduces the risk of another wave of forced liquidations if traders overextend their ￰12￱ now, ETH’s short-term recovery remains largely fueled by derivatives activity rather than spot ￰13￱ next few days will be pivotal in determining Ethereum’s ￰14￱ price holds above the $4,000 region with sustained volume, it could confirm that bulls are regaining control.

However, a sudden drop in Open Interest or sharp funding spikes could signal that the rally is overextended — setting the stage for another ￰15￱ Reading: From $254M To $78.5B: Tron USDT Growth Drives Network Valuation Ethereum Rebounds, But Resistance Looms Ahead Ethereum is showing a solid recovery after last week’s dramatic sell-off that drove prices down to the $3,450 ￰16￱ daily chart shows that ETH quickly rebounded from the 200-day moving average (red line), confirming it as a major area of ￰17￱ is now consolidating near $4,150, attempting to build momentum after a strong bullish candle on high volume — a potential sign that buyers are regaining control.

However, ETH faces immediate resistance near the $4,250–$4,300 zone, which coincides with the 50-day moving average (blue line). This area previously acted as strong support, and reclaiming it would be essential for confirming a shift back into bullish ￰18￱ 100-day moving average (green line) is now flattening, reflecting the market’s cautious sentiment following the massive liquidation ￰19￱ Reading: Solana Network Activity Drops 50%: Is The Rally Built On Weak Fundamentals? If bulls manage to sustain price action above $4,000, the next targets lie near $4,500 and eventually $4,750. Conversely, failure to hold the 200-day MA could open the door to a deeper retest of $3,600 or ￰20￱ now, Ethereum’s recovery remains technically constructive, but it must overcome these resistance levels to confirm that the recent rebound is more than just a short-term reaction to oversold ￰21￱ image from ChatGPT, chart from ￰22￱