Reviewed by Reviewed by Renuka Tahelyani Updated 19:00 EDT October 11, 2026 Share Share Share Back to Top After holding the key support near $2250 for two days, Ethereum [ETH] sellers regained the market control, accelerating further downward. The level was the last support holding the structure after the altcoin fell outside the range it had been trading in since the last week of September
The altcoin’s downward momentum continued before halting near the $2400 support. Bulls then regained momentum, igniting a rebound back above $2500 at $2519. Since then, the upside momentum has stalled near the $2500 mark
Meanwhile, the spot volume has been declining dramatically, as weekly ETF outflows still remain high near $542 million, suggesting demand remains weak. Heavy liquidations, dominated by leveraged longs, further accelerated the decline
Therefore, looking ahead, $2,408 remains critical, as another breakdown below that support could expose $2,350–$2,400
Conversely, reclaiming $2,560 would signal improving demand and open a recovery toward $2,625, potentially restoring confidence and reducing downside pressure
Elsewhere, Ethereum’s price recovery now faces another hurdle. According to Alphractal’s derivatives positioning data, major traders’ confidence is declining
The 30-day and 180-day open interest deltas are both negative, which represents that long-term open interest for leveraged positions will continue to decrease
Moreover, the whale-versus-retail delta also remains negative. Therefore, it simply implies that whales are supporting less bearish trading compared to retail buyers
This shift matters because ETH still carries approximately 10.58 million ETH, worth roughly $12.9 billion in total open interest. As such, this represents a significant amount of potential volatility should the price suddenly move
That aside, the latest reading shows a negative delta near 940,000 ETH according to Alphractal data, reinforcing the scale of positioning pressure
Consequently, another decline may lead to new liquidation and increased selling. On the other hand, less exposure to sell-offs may reduce volatility when Ethereum becomes stable and traders build their position cautiously
Ethereum’s recent sell-off has not stopped every trader from betting on a rebound. However, Bitfinex’ long positions have risen to almost $283,405 with an extreme rise in positive bets for ETH as it tries to bounce back
The concentration of such positioning indicates that some traders believe the loss will be seen as a buy signal rather than the beginning of larger declines. Still, the bets carry a significant risk since both RSI readings have climbed above 82, indicating extremely stretched momentum
If ETH fails to sustain its recovery, these leveraged longs could face pressure to exit, potentially adding fresh selling. Conversely, continued price strength could reward early buyers and encourage further bullish positioning
The key question is whether actual demand can support this aggressive bet before profit-taking or a reversal undermines it
Ethereum risks further losses below $2,430, with $2,560 key to recovery
ETH faces liquidation risk as Bitfinex longs surge toward $283,405
Muriuki Lazaro is a on-chain data analyst with a B.Sc. in Data Science. Muriuki specializes in dissecting complex on-chain data into clear and accurate insights for readers in the crypto ecosystem, with a particular focus on Bitcoin
