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Ethereum Slips Below $1,700 as Futures Leverage Rapidly Unwinds

Uneven clearing of leveraged futures and negative funding on Binance signal defensive positioning that increases the risk of deeper losses if near‑term supports fail.

Overview

  • Ethereum resumed a fresh decline on Wednesday when price fell below short‑term levels near $1,700 and moved toward about $1,670 on bearish hourly indicators.
  • Open interest on Gate.io and Bybit collapsed to levels last seen in April 2025, erasing roughly a year of built‑up leverage in a matter of weeks and compressing risk on those venues.
  • Binance has not seen the same drop in open interest and its funding rate has turned negative at about -0.0038, a sign that remaining futures activity is defensive or tilted toward shorts rather than fresh long conviction.
  • Short‑term technicals show bearish momentum with hourly MACD and RSI weak and immediate supports near $1,610 and $1,585 that would expose the market to heavier selling and potential liquidation pressure if they break.
  • At the same time one large institutional buyer reported new purchases totalling $213 million and now controls about 4.59% of circulating ETH which reduces available float and could shape how much lower prices can fall before new demand appears.