Ethereum is testing the $2,450 resistance level as leverage on derivatives exchanges cools, according to recent analysis. Data from CoinGlass shows Ethereum’s futures volume surged over 117% to $47.09 billion, while open interest rose to $33.29 billion. Analyst Darkfost suggests the reduction in leverage could help stabilize the asset ahead of a potential breakout from its month-long trading range.
Ethereum price analysis shows traders are watching a narrow breakout zone as leverage cools across derivatives markets. As of writing, Ethereum (ETH) is trading at $2,337.88 with a daily trading volume of $21.54 billion.
Analyst Darkfost pointed out that ETH has moved between $2,250 and $2,450 for nearly one month. The analyst stated that during the recent rebound, Ethereum’s open interest rose by approximately $4.5 billion.
The leverage ratio of ETH on Binance has now fallen significantly to 0.57 from a high of 0.76 seen in March. Funding rates have also turned mostly positive, indicating that long positions are back in control.
Darkfost attributed the leverage reduction to position liquidation on both sides of the market. The analyst said this does not need to be viewed as a bearish signal.
CoinGlass data shows total liquidations in the past 24 hours added up to $91.64 million. Long liquidations amounted to $35.60 million, while short liquidations totaled $56.05 million.
