ETH’s drop has not cleared the leverage.
$ETH is down about 5.5% over 24 hours. Yet #Binance perpetual open interest is $5.51B, up 0.94% across the same window. Funding remains positive at 0.008159%, while 77.14% of Binance ETH/USDT accounts are long. Reported long liquidations reached $28.57M.
The interesting part is not the sell-off itself. It is that #Leverage grew while price fell. Fresh longs replaced part of the positions that were flushed instead of the market fully resetting.
A healthier rebound would come with open interest cooling and funding moving closer to neutral. If price keeps slipping while leverage stays elevated, crowded dip-buyers remain fuel for another long squeeze.
$ETH is down about 5.5% over 24 hours. Yet #Binance perpetual open interest is $5.51B, up 0.94% across the same window. Funding remains positive at 0.008159%, while 77.14% of Binance ETH/USDT accounts are long. Reported long liquidations reached $28.57M.
The interesting part is not the sell-off itself. It is that #Leverage grew while price fell. Fresh longs replaced part of the positions that were flushed instead of the market fully resetting.
A healthier rebound would come with open interest cooling and funding moving closer to neutral. If price keeps slipping while leverage stays elevated, crowded dip-buyers remain fuel for another long squeeze.