In the past 24 hours, Ethereum has staged a thrilling reversal drama. Within 24 hours, the ETH price rebounded strongly from the abyss of a sharp decline, briefly surpassing the $2400 mark, reaching a high of $2481, with a daily increase of 5.34%. This rebound was like a bolt of lightning, piercing through the gloom of a 10.58% drop to $2111 the previous day, prompting investors to ask: is this a signal of a bottom reversal, or another trap set by the bears? The trigger for the plunge had long been buried. Market data shows that the ETH leverage ratio continues to rise to historical peaks, and the frenzy in the derivatives market set the stage for the plummet.
When the ETH/BTC exchange rate continues to weaken and the price breaks below the key support level of $2400, high-leverage positions collapse like a house of cards. The liquidity-scarce area of $2380-$2155 becomes a 'death vacuum zone,' with prices plummeting freely, touching a low of $2111 last night, as a wave of liquidations sweeps across the market. Massive liquidations become the bloodiest protagonists in this long-short slaughter.
In the past 24 hours, the total liquidation amount across the network reached $1.012 billion, with Ethereum contributing $372 million, far exceeding Bitcoin's $304 million. Staggeringly, the $903 million in long liquidations shows that most investors fell before dawn, as bears completed their slaughter of the bulls amidst the revelry. Although the rebound was fierce, it cannot hide the weakness in the technicals.
Despite the price recovery, active addresses on-chain decreased by 5%, and retail investor enthusiasm has waned, indicating that the rebound is not solid. The market stands at a crossroads. ETF fund flows are stagnant, and institutional sentiment is cautious, while the $2155 weekly support level and the $2026 0.236 Fibonacci retracement level have become the last line of defense for the bulls. The current volatility of ETH is both an inevitable pain of leverage liquidation and a confusion in the market's reassessment of value following the upgrade of the Ethereum ecosystem. When liquidity becomes a double-edged sword, who will be the next to be harvested? The answer lies in the moment traders press the leverage button and in whether Ethereum can truly break through its technical dilemmas.
Trading Advice:
Short Bitcoin at 106000-106500, targeting around 103000-100000. Defend at 107500.
Short Ethereum at 2450-2500, targeting around 2350-2250. Defend at 2550.
