Ethereum Open Interest Cut In Half As $6.4B In | Crypto News
Ethereum has fallen below the $2,800 mark after a sharp and sudden decline, deepening panic across the market and reinforcing the sense that bulls have misplaced control. The latest drop has pushed buyers into defensive mode, with some analysts now brazenly discussing the likelihood of a broader bear market rising. Selling stress has intensified across spot and derivatives markets, and volatility continues to rise as merchants battle to establish a dependable help zone.
A new CryptoQuant report by Darkfost highlights one of the most alarming developments: Ethereum’s open curiosity on Binance has been steadily collapsing for more than three months. After reaching an all-time high of $12.6 billion on August 22, open curiosity has now been cut in half. Nearly $6.4 billion in by-product positions have evaporated, bringing ETH’s open curiosity down to $6.2 billion, a steep 51% decline.
While this seems to be an extraordinary contraction, Darkfost notes that open curiosity has only just slipped below the earlier all-time high of $7.7 billion. This underscores how speculative and overstretched the 2025 derivatives market had grow to be — and suggests that Ethereum could also be present process a a lot deeper structural reset than most anticipated.
Speculation Unwinds Across Exchanges as Ethereum Enters Deep Reset Phase
Darkfost emphasizes that 2025 has been the most speculative part in Ethereum’s historical past, fueled by aggressive leverage, fast inflows, and a market construction that proved far less stable — and far less sustainable — than it appeared during the rally. The collapse in open curiosity on Binance is only half of the story.
The same sample is unfolding across major derivatives platforms, revealing a broader structural unwind fairly than an exchange-specific phenomenon.
On Gate.io, ETH open curiosity has fallen from $5.2 billion to $3.5 billion. On Bybit, the drop is even more extreme, plunging from $6.1 billion to $2.3 billion. This synchronized contraction exhibits how aggressively speculative positions have been flushed out. Meanwhile, the continued correction has dragged Ethereum’s price from $4,830 to $2,800, marking a steep 43% decline from the highs.
This widespread discount in leverage suggests the market is present process a deeper reset than typical corrections. Investors aren’t dashing to re-enter positions, particularly as liquidations continue to stack up across exchanges.
While shrinking open curiosity weighs on short-term momentum and sentiment, Darkfost notes that such aggressive deleveraging might finally help rebuild a more healthy market basis — one succesful of supporting a sturdy backside for ETH.
ETH Loses Key Trend Support as 3-Day Structure Turns Fully Bearish
Ethereum’s 3-day chart exhibits a decisive breakdown in construction, with price now firmly below the 50 SMA, 100 SMA, and 200 SMA for the first time since late 2024. The rejection from the $3,600–$3,800 area triggered a strong impulse to the draw back, sending ETH straight through all major transferring averages and confirming a shift toward a higher-timeframe downtrend. The current trading zone around $2,800 displays a vital take a look at of former help, but momentum stays weak.
The 50 SMA has now crossed below the 100 SMA, while both are starting to converge downward toward the 200 SMA — a configuration that usually precedes sustained corrections. Volume has elevated on pink candles, displaying that sellers stay dominant, and there may be little evidence of aggressive dip-buying. The most latest candle wick toward $2,700 highlights vulnerability fairly than strength, suggesting consumers are hesitant to defend this degree with conviction.
ETH is also forming a sequence of decrease highs and decrease lows, additional confirming bearish market construction. If $2,750 breaks cleanly, the next important liquidity zones sit close to $2,550 and $2,300, where prior consolidations developed earlier in the cycle.
Featured image from ChatGPT, chart from TradingView.com
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