ETH has recently retreated to near its multi-year support zone, and the market is now watching whether this level can prevent further declines. Foreign media commentators noted that while prices have weakened, high-leverage positions in the derivatives market have clearly contracted, making future price movements more dependent on whether spot buying returns.
Open interest fell significantly.
The report noted that after ETH fell from its highs, open interest dropped from nearly $35 billion to approximately $24 billion. Unlike a scenario where prices decline and leverage continues to accumulate, this change appears more like traders actively closing positions and reducing their risk exposure.
From a market structure perspective, this means that some speculative positions have been cleared out. If buying reappears in the current area, the lower leverage environment may make the rebound more stable; however, if prices and open interest continue to weaken in tandem, market confidence may decline further.
More concentrated liquidation above $1700
The article cites a liquidation distribution chart, stating that the short-selling liquidation liquidity gathered above the current price is significantly higher than the long-selling liquidation volume below. The largest liquidation zones are concentrated around $1750, $1800, and $1900.
This means that once ETH climbs back above $1700, some short positions may be forced to be covered, further pushing up the price. If liquidations are triggered consecutively, the upward movement in the short term could be amplified.
- Open interest fell from approximately $35 billion to $24 billion.
- The key short-term level is around $1700.
- The upper liquidation zone is concentrated between $1750 and $1900.
The $1650 level remains the focus.
The report suggests that ETH is currently in a crucial observation range. If the support around $1650 holds, the market may first experience a technical correction before testing higher resistance levels; if this area is breached, attention may shift to the lower $1400 area.
The article also mentions that ETH has previously fallen by about 45% from its high above $3,000. Against this backdrop, whether the price can recover to $1,700 becomes a crucial signal for determining whether a short squeeze will occur in the short term.
