Dec 3, 2025
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Ethereum Open Interest Drops 51% as Market Undergoes Deep Reset
Ethereum Market Update:
- Ethereum has fallen below the $2,800 mark, signaling potential market panic and loss of bullish control.
- Selling pressure and rising volatility have intensified, with traders struggling to find a reliable support zone.
- Ethereum's open interest on Binance has decreased by 51%, from $12.6 billion to $6.2 billion in three months.
- This decline suggests a deeper structural reset within the derivatives market.
Speculative Position Unwind Across Exchanges
- The contraction in open interest is not limited to Binance; it is evident across major platforms.
- Gate.io saw Ethereum's open interest drop from $5.2 billion to $3.5 billion.
- Bybit experienced a decrease from $6.1 billion to $2.3 billion.
This widespread reduction in leverage implies a substantial market reset. Investors are hesitant to re-enter positions due to ongoing liquidations.
Technical Indicators Turn Bearish
- Ethereum's 3-day chart shows a breakdown in structure, with price below the 50 SMA, 100 SMA, and 200 SMA.
- The rejection from the $3,600–$3,800 region confirmed a shift toward a downtrend.
- The 50 SMA has crossed below the 100 SMA, indicating potential sustained corrections.
- Volume increase on red candles shows seller dominance; buyers show little conviction at current levels.
- Potential support levels are near $2,550 and $2,300 if the $2,750 support breaks.