Ethereum falls below $2,700 as longs get flushed: can $2,626 save the rally

Ethereum (ETH) fell by more than 3% to below $2,700 on Thursday as cryptocurrency traders took profits following the market's recent advance. The pullback came after ETH encountered resistance around $2,786. Although its daily price structure remains broadly constructive, derivatives participation and mainnet activity have not increased as quickly as the price. That divergence presents a mixed outlook. Cautious leveraged positioning may indicate that traders lack conviction in the rally, but it also reduces signs of excessive speculation and leaves room for open interest to expand if demand strengthens. Ethereum Open Interest dips below $35 billion Ethereum-denominated open interest has remained relatively stable since the short squeeze recorded in late August.

Related Symbols 1

ETHUSD Ethereum USD

AI Market Analysis

Analysis generated by artificial intelligence

ETHUSD: short-term bearish, broader picture mixed. The move below $2,700 and roughly $97.6 million in long liquidations point to forced selling amplifying the pullback. That can keep near-term pressure on ETH, though clearing leveraged longs may also reduce immediate liquidation risk if spot buyers step in.

The key test is the article’s cited $2,626 support: holding it would preserve the recovery structure; a sustained break could expose the $2,544–$2,549 area. Reclaiming $2,786 would help ease the immediate downside concern, but price confirmation matters more than the levels alone.

The underlying signals are mixed. Open interest has not risen as quickly as price, which suggests less leverage-fueled froth but also limited derivatives conviction. Meanwhile, flat active-address activity and declining mainnet transactions leave the rally with weaker on-chain confirmation. Traders should watch whether ETH stabilizes at support alongside renewed spot demand—and whether network activity improves—rather than treating the liquidation flush alone as evidence that the rally has either ended or resumed.

Source: Invezz

Visit Source

0 0 0

Comment