Ethereum OI Suffers Its Biggest Cleanup Since Early 2024 – Details

Ethereum has fallen below the $4,000 level for the first time since early August, marking a significant shift in market ￰0￱ weeks of strong performance, ETH has now lost nearly 20% of its value since September 13, leaving many traders concerned about the next ￰1￱ broader market correction has fueled uncertainty, but some analysts argue this is a necessary reset that could prepare the ground for renewed ￰2￱ Reading: 11 Wallets Receive 295,861 Ethereum ($1.19B) From Major Institutions: Accumulation Or OTC Shuffle? Top analyst Darkfost highlights that Ethereum’s Open Interest is experiencing one of its biggest ￰3￱ notes that after an extended period of bullish momentum, excess leverage has been punished, leading to a sharp contraction in ￰4￱ decline is especially visible on Binance, where much of the recent ETH trading activity has taken ￰5￱ the drop in price and sentiment appears negative, analysts see potential positives in this ￰6￱ Open Interest often reduces the risk of cascading liquidations and allows the market to ￰7￱ Ethereum, this moment may serve as a critical test of its ability to hold strong levels of support and set the stage for its next move once bullish momentum returns.

Ethereum’s Open Interest Reset Marks a Turning Point Darkfost explains that the recent shift in Ethereum’s Open Interest is not only significant but also one of the sharpest resets observed since the start of 2024. Historically, such resets follow periods where excessive leverage pushes Open Interest to unsustainable levels, as was the case for ETH in recent ￰8￱ cryptocurrency had been attracting a large share of market attention, fueled by ETF enthusiasm and strong accumulation patterns, which left it vulnerable to sharp ￰9￱ liquidations accumulate and Open Interest falls, the immediate selling pressure often begins to ￰10￱ tends to create conditions where the market can stabilize and, in some cases, prepare for ￰11￱ dynamic can be seen as a “cleansing” effect, flushing out overextended traders and restoring balance to the market ￰12￱ detail, Binance recorded the steepest monthly average decline, with more than $3 billion in Open Interest wiped out on September 23rd, followed by another $1 billion ￰13￱ also faced a reduction of $1.2 billion, while OKX dropped around $580 ￰14￱ figures underscore the scale of the reset across major derivatives ￰15￱ contraction reflects a broader market reset, unwinding an environment that had become dangerously ￰16￱ Ethereum, it may mark the beginning of a healthier phase, where reduced speculative pressure allows organic demand and fundamentals to play a stronger role in shaping the next ￰17￱ Reading: Ethereum Accumulator Addresses Inflows Explode: 400K ETH Added In 24H Despite Selloff Price Action Insights: Testing Critical Levels Ethereum (ETH) is trading near $3,939, marking a sharp decline of over 5% in the latest session and extending its correction since the early September peak above $4,700.

This drop has brought ETH below the key $4,000 psychological level for the first time since August, signaling rising selling ￰18￱ chart shows ETH breaking down after forming a double top pattern around the $4,700–$4,800 range, a classic bearish signal that suggested exhaustion of upward ￰19￱ rejection from this zone has now pushed ETH closer to its 50-day moving average (blue), which previously acted as strong support during the rally. A decisive close below this line could open the door to a deeper retrace toward the 200-day moving average (red), now positioned near $3,100–$3,200. Related Reading: ASTER Pushes To New All-Time High As Bullish Structure Supports Continuation – Details Despite the current weakness, ETH remains in a broader uptrend when viewed from the July low near $2,200.

That rebound established a strong bullish structure, and as long as ETH holds above the $3,500–$3,600 region, the long-term outlook remains ￰20￱ now, bulls must reclaim $4,200 to regain momentum, while failure to hold current levels may accelerate selling pressure and test deeper supports in the coming ￰21￱ image from Dall-E, chart from TradingView