1.2M Ethereum Stacked, $5B Open Interest Wiped Out – Can ETH Rebound?

Record Inflows Spark Sell-Side Pressure

Data shows a staggering 1.2 million ETH moved to exchanges over the past week, the largest inflow surge on record. This surge typically signals mounting sell pressure as traders prime their positions for potential profit-taking or downside protection.

Ether’s price dipped nearly 6% during this period, reflecting the imbalance between aggressive inflows and waning buying interest on spot markets.

Derivatives Open Interest Collapses

Meanwhile, total open interest across Ethereum futures and perpetual contracts has plunged by about $5 billion. Liquidations among leveraged long positions dominated the moves, shaking out weak hands and extinguishing crowded bullish bets.

This flush occurred despite historically low funding rates, underscoring traders’ reluctance to maintain extended leverage amid growing macro uncertainty.

Price Technicals Under Pressure

ETH/USD now hovers just above key support in the $1,600–$1,700 range, a zone that historically has attracted buyers during previous corrections. A close below $1,600 could invite accelerated downside testing the $1,500 mark.

On the upside, reclaiming the 20-day exponential moving average, currently near $1,750, will be crucial for restoring short-term bullish momentum.

Long-Term Holders Hold Strong

Contrasting with trader nervousness, on-chain analysis reveals that long-term holders (LTHs) are largely unfazed. Their collective balance continues to rise, suggesting that core believers in Ethereum’s long-term value proposition are still accumulating.

LTHs now command over 70% of total ETH supply, a share last seen during prior market bottoms, pointing to a pronounced HODL mentality at these levels.

Network Fundamentals Remain Intact

Ethereum’s recent upgrades have lowered transaction fees and boosted staking yields, underpinning the network’s usability and appeal. Daily active addresses have ticked higher, hinting at sustained developer activity and decentralized finance growth.

These fundamental tailwinds could provide a buffer against deeper sell-offs, even as broader crypto sentiment turns negative.

Looking Ahead

Short-term volatility is likely to persist as traders navigate shifting risk appetites and macro headwinds. However, the resilience of long-term holders and improving network metrics suggest that Ethereum’s foundation remains robust.

Key levels to watch include $1,600 on the downside and $1,800 on the upside. A decisive move beyond either threshold may set the tone for the next leg of the market cycle.

Conclusion

While ETC’s sharp inflows and derivative unwind have rattled traders, Ethereum’s on-chain health and strong base of long-term supporters point toward the potential for stabilization—and a meaningful rebound—once market turbulence subsides.