Key Takeaways:
ETH’s funding rate turned negative after $115.8M in long liquidations — a signal many traders see as bullish.
Retail traders bore the brunt of the sell-off but stepped in to aggressively buy the dip at $3,600.
Ethereum is rebounding faster than Bitcoin, reclaiming key levels as BTC struggles below $116,000.
ETH Sells Off to $3,600 — But Buyers Step In
Ethereum’s price faced persistent selling near $4,000 this week, even with $10.16 billion in strategic ETH reserves and 19 straight days of inflows to spot ETH ETFs, which now hold $21.85 billion worth of Ether.
Following Bitcoin’s sharp reaction to President Trump’s new tariff announcements on Canada, Taiwan, South Korea, and Vietnam, ETH dropped to $3,600 on Thursday.
Data from Hyblock’s liquidation heatmap shows ETH tapping a long leverage liquidation cluster at that level, while heavy short positioning remains near $3,900 — an area that has absorbed the most selling pressure this week.
$115M in ETH Longs Liquidated
In just five hours, $115.8 million in ETH longs were liquidated, flipping Ether’s funding rate negative for the first time since June 25.
Why this matters:
Negative funding rates — where short sellers pay longs — are often seen as a buy signal for Bitcoin and Ethereum, suggesting a market reset as overleveraged positions are cleared.
Retail Traders Absorb the Hit — and the Dip
Breaking down ETH’s cumulative volume delta (CVD) by trade size shows a clear pattern:
Retail investors (100–1,000 ETH trades) took most of the liquidation hit.
Whales (10,000–1M ETH trades) remained largely passive during the flush.
Indicators like anchored whales vs. retail and true retail longs vs. shorts confirm that retail traders were the ones net long during the sell-off — and they were the first to buy the dip.
ETH Bounces as Bitcoin Stalls
With retail bulls stepping in, ETH price has begun reclaiming its point of control around $3,775, while Bitcoin (BTC $115,547) is struggling to hold above $116,000.
This divergence suggests that Ethereum’s rebound momentum is stronger in the short term, even as Bitcoin’s price remains capped by macro-driven selling.
What’s Next for ETH?
Upside target: ETH needs to clear $3,900–$4,000 for a clean breakout.
Downside risk: If funding remains negative but buying weakens, ETH could revisit $3,500 support.
Market catalyst: Continued ETF inflows (19 days straight) and strategic reserve accumulation remain bullish undercurrents for ETH.
