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Key Takeaways:
- Ethereum plunged nearly 15% in 72 hours as excessive leverage triggered a sharp market unwind, with Open Interest dropping by $6 billion.
- Whale accumulation at lower levels signals potential support, but ETH’s $2,400 price floor remains fragile amid continued liquidation pressure.
Ethereum [ETH] has become the poster child for the double-edged nature of leverage in crypto markets. What started as optimism over easing macro fears quickly turned into a punishing reversal, catching overleveraged traders off guard. At the time of writing, ETH is down nearly 15% from its weekly high of $2,878, now struggling to hold onto the critical $2,400 support level.
The setup was clear: macro tailwinds—including dovish U.S. rate expectations, improving risk sentiment, and upbeat CPI data—triggered a surge in bullish positions. On June 11th, ETH’s Open Interest (OI) hit a record $41.45 billion, with speculative capital driving prices near $2,815. Notably, Binance’s ETH OI alone ballooned 38% in just five days to $6.9 billion, signaling a dangerously overheated market.
However, the bullish momentum quickly turned into a classic bull trap. As prices failed to break above $3,000, a sharp correction triggered a cascade of liquidations. ETH’s OI has since dropped 14% to $35.51 billion, with traders either cutting losses or getting wiped out. In comparison, Ethereum absorbed nearly three times the deleveraging impact Bitcoin [BTC] did—despite BTC surging past $110,000 on similar macro cues.
Now, all eyes are on ETH’s ability to hold above key support zones. According to AMBCrypto, maintaining current levels is crucial to avoid a deeper market wipeout. Yet, amid retail panic, some whales are seeing opportunity. Blockchain tracker Lookonchain reports one large wallet purchased 48,825 ETH—worth roughly $127 million—at an average price of $2,605, even as prices briefly dipped to $2,440.
While the crowd panic-sells $ETH, this whale – who's already made ~$30M profit on $ETH – is buying $ETH crazily.
— Lookonchain (@lookonchain) June 13, 2025
Over the past 8 hours, he's bought 48,825 $ETH($127M) from Coinbase and Wintermute at an average price of $2,605.https://t.co/7eUZQPGfROhttps://t.co/SHASXyPST1 pic.twitter.com/r7VZMz12tV
Still, pressure remains high. With retail traders sidelined and sell-side liquidity intensifying, ETH’s $2,400 support is hanging by a thread. Should it give way without institutional defense, the next leg down may not be driven by fear—but by forced liquidations.
As the weekend approaches, Ethereum’s price action will be pivotal. Smart money may be moving in, but the market’s fate hinges on whether they can anchor the floor—or whether another wave of liquidations will break it wide open.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
Also Read: Ethereum Whale Rebuys $46.5M in ETH After $78M Profit-Taking Sale
