Ethereum is navigating a cautious market phase as derivatives positioning resets and the price trades near a major support area. Market data shows cooling leverage and steady funding as traders reassess exposure around current levels.
Market Structure Near Key Support
Ethereum is as of writing trading at $2,991.27 after a 24-hour decline of 6.16%. The asset also recorded a 15.85% weekly loss as it moved back toward the 2.9k–3k support band. This zone remains an important reference point for short-term sentiment.
A detailed chart review posted by Crypto Candy noted that ETH failed to maintain strength above the 3.3k–3.5k region. The analysis described sellers defending that zone, forcing the price to retreat toward its current range. The commentary added that the market still holds above support despite slower momentum.
Trading activity increased during this move. Volume expanded while open interest dropped by more than 4 percent, signaling a reset in leveraged positions. This combination often appears during periods of forced unwinding or risk reduction.
Funding Rates Reflect Reduced Leverage
Derivatives data shows funding rates near neutral, with no extreme spikes in recent sessions. This behavior suggests a balanced market where neither side is using excessive leverage. The neutral readings appeared while the price trended down, pointing to lower directional conviction among traders.
The OI-Weighted Funding Rate chart shows a long stretch of mild positive funding with brief negative periods. A sharp negative event in mid-October aligned with a rapid decline and recovery. That move emphasized the market’s sensitivity to liquidation phases.
Current funding conditions contrast with earlier periods of crowded long exposure. With funding near equilibrium, traders appear more cautious while waiting for clearer price direction around support. This environment allows spot flows to influence the next move more strongly.
Liquidations and Positioning Shift
Rekt data recorded $175.85 million in liquidations over 24 hours, including $139.44 million in long positions. This liquidation wave reduced open interest and removed weaker long exposure. Such moves tend to reset market positioning after rapid price changes.
Long-short ratios remain elevated on several exchanges, though the recent decline suggests traders are moderating risk. Binance and OKX account-based ratios continue to show a long-leaning bias, but overall leverage is lower than earlier in the month.
Options activity increased sharply with a 113.78 percent rise in volume. This suggests traders are using short-term strategies to manage risk while ETH trades near its support zone. The rise in options open interest shows continued engagement despite the broader cooldown.