Key takeaways
- Ethereum liquidations approach $44 million as longs suffer
- ETH struggles near $2,300 ahead of Fed decision
- Further selling could expose support around $2,200
Ethereum is facing another test of investor confidence after approximately $44 million in leveraged positions were liquidated, with traders betting on higher prices absorbing most of the losses.
ETH traded around $2,320 on October 26, struggling to recover as Bitcoin briefly fell below $80,000 ahead of the Federal Reserve's October 27–28 policy meeting.
The latest derivatives data suggest that Ethereum's correction is no longer affecting spot investors alone. Leveraged traders are also being forced out of positions, raising concerns about further volatility if ETH loses the $2,300 region.
Ethereum Long Traders Take the Biggest Liquidation Hit
According to CoinGlass data cited by The Crypto Times, approximately $44 million in Ethereum futures positions were liquidated over a 24-hour reporting window.
Long positions accounted for roughly 74% of those losses, equivalent to approximately $32.6 million. The remaining $11.4 million came from short positions.
The largest individual liquidation reportedly involved a Binance ETH/USDT long worth approximately $6.97 million.
A liquidation occurs when an exchange forcibly closes a leveraged position after its collateral becomes insufficient. Such closures can amplify existing price declines, particularly when multiple traders hold similar positions.
Ethereum's earlier liquidation-driven correction demonstrated how excessive leverage can accelerate selling even without a major new fundamental catalyst.
Meanwhile, Ethereum futures open interest remained near $30 billion, indicating that substantial leveraged exposure still exists.
Ethereum ETF Withdrawals Add to Market Pressure
The liquidation wave follows a difficult month for institutional Ethereum investment products.
According to Farside Investors, U.S. spot Ethereum ETFs recorded approximately $110.6 million in net withdrawals on October 22, followed by a modest $4.4 million inflow on October 23.
The five trading sessions ending October 23 nevertheless produced roughly $220.7 million in net outflows, suggesting institutional demand remains inconsistent.
Coinpaper previously covered the October ETF withdrawal trend, which has complicated Ethereum's attempts to establish a sustained recovery.
The latest weakness also follows the postponement of the Glamsterdam upgrade's planned October 26 activation on the Hoodi testnet.
Developers delayed the test after identifying concerns involving proposed Ethereum gas-accounting changes. The postponement does not mean Ethereum's mainnet has stopped functioning.
As discussed in Coinpaper's recent upgrade analysis, the technical delay adds uncertainty to Ethereum's development schedule without establishing a direct cause for the cryptocurrency's price decline.
Ethereum Price Prediction: Is $2,200 Next?
Ethereum's immediate challenge is defending the psychologically important $2,300 support level.
A sustained decline below the recent $2,285 low could expose the $2,250-$2,200 region, where another concentration of leveraged long positions may become vulnerable.
Liquidation heatmaps indicate notable estimated exposure around $2,278-$2,284. These estimates are potential liquidation concentrations, not confirmed future sales.
A deeper breakdown below $2,200 could revive the risk of Ethereum falling toward $2,000, particularly if broader cryptocurrency markets weaken after the Fed decision.
Conversely, reclaiming $2,350 and breaking above $2,400 would improve the short-term recovery outlook. A stronger move could then reopen the path toward the previously identified $2,500–$2,600 resistance zone.
