ETH fell roughly 5% during the latest selloff as rising Treasury yields, a stronger dollar and weaker risk appetite pressured crypto markets. At the same time, the derivatives market remains heavily exposed, with open interest still above $33 billion, according to CoinGlass.
Long Liquidations Are Already Building
The latest decline has already punished leveraged bulls.
Around $165 million in ETH long positions were liquidated during the recent selloff, according to market data cited by Invezz, as Ethereum fell toward the $2,500-$2,550 area.
That matters because crowded positioning can turn an ordinary pullback into a faster cascade. When ETH falls through support, leveraged longs are forced to close automatically, creating additional market sell orders.
Ethereum is now sitting almost exactly inside the $2,500-$2,550 zone that several analysts had previously identified as an attractive buy area.
ETF Outflows Add Another Layer of Pressure
Institutional demand has also weakened.
U.S. spot Ethereum ETFs recorded another $160.9 million in net outflows in the latest session, bringing five-day withdrawals to roughly $506 million, the largest five-day outflow since January.
That extends the weakness already visible earlier this week, when Ethereum ETFs suffered their biggest outflow in weeks.
The short-term picture therefore looks very different from mid-September, when falling exchange reserves and returning ETF inflows supported a tighter-supply argument for ETH.
