Ethereum Open Interest Sees Sharpest Reset Since 2024 As Price Drops Below $4,000

Ethereum is undergoing one of the most significant resets in over a year, caused by its price breaking below $4,000. This retest has been most visible in futures open interest, where billions of dollars in positions have been wiped out across major ￰0￱ rapid unwinding comes as a correction move to weeks of excessive leverage during uptrends that had pushed derivatives activity to unsustainable ￰1￱ Reading: When Will XRP Reach $25? Bitcoin Investor Shares A Bold Prediction Massive Open Interest Wipeout Across Major Exchanges The most recent Ethereum price correction was a broader market reset rather than a mere dip, with leveraged traders facing the brunt of the ￰2￱ shows that Ethereum’s open interest experienced a steep downfall over the just concluded week across multiple crypto ￰3￱ to data from on-chain analytics platform CryptoQuant, billions worth of Ethereum positions were wiped out last week, with Binance leading the downturn with the steepest monthly average drop.

Ethereum’s slide under the $4,000 mark proved to be the breaking point for over-leveraged ￰4￱ move unleashed a wave of liquidations across derivatives markets, compounding selling ￰5￱ shows that more than $3 billion was erased on September 23 through Binance alone, followed by over $1 billion just a day ￰6￱ also shed $1.2 billion in positions, while OKX recorded a $580 million ￰7￱ sharp reduction is visible in aggregate open interest, which has slumped to its lowest level since early ￰8￱ the chart data shows, futures leverage and open interest were closely tied to the price rally in July and August, and at the same time, it declined in lockstep with the ￰9￱ Open Interest by exchange Spot Ethereum ETF Outflows Add To Market Strain Ethereum’s break below $4,000 and the decline in open interest coincides with a week of heavy outflows from spot Ethereum ETFs in the United ￰10￱ to data from Farside Investors, $795.56 million flowed out over five trading days last week, which is the largest weekly exodus since the products ￰11￱ sell-off intensified toward the end of the week, with Thursday recording $251.2 million in outflows, followed by another $248.4 million on ￰12￱ institutinal participation contributed massively to the sell-side pressure, with investors showing caution amid uncertainty over whether regulators will allow staking features in these ￰13￱ synchronized exit from both derivatives and institutional products has amplified volatility, creating a convergence of pressure across Ethereum’s trading ￰14￱ Reading: XRP Eyeing Explosive Move In Next Few Months, Research Shows After dipping as low as $3,845, ETH bulls have managed to hold above $3,800.

At the time of writing, Ethereum is trading at $4,002. Despite this attempt to regain stability, the leading altcoin is still down by about 10% in a weekly timeframe, considering it was trading around $4,490 this time last ￰15￱ bullish scenario now lies in whether ETH can reclaim and sustain a move above $4,000. Featured image from Unsplash, chart from TradingView