Ethereum has plunged below the $2,800 mark after a sharp decline, deepening market panic and signaling a loss of bull control. A CryptoQuant report by analyst Darkfost reveals that Ethereum's open interest on Binance collapsed by 51% over three months, from an all-time high of $12.6 billion on August 22 to $6.2 billion, erasing $6.4 billion in derivative positions.
This decline is part of a broader structural unwind, with similar patterns across major exchanges. On Gate.io, ETH open interest fell from $5.2 billion to $3.5 billion, while on Bybit, it plummeted from $6.1 billion to $2.3 billion. The synchronized contraction underscores how aggressive speculative positioning in 2025 is now unwinding, marking a deep market reset.
Ethereum's price has dropped 43% from its peak of $4,830 to $2,800, breaking below key moving averages on the 3-day chart. The 50 SMA has crossed below the 100 SMA, confirming a bearish trend with lower highs and lower lows. Support near $2,750 is vulnerable, with potential further declines to $2,550 or $2,300 if broken.
Darkfost emphasizes that while shrinking open interest weighs on short-term momentum, such deleveraging may ultimately help rebuild a healthier market foundation capable of supporting a durable bottom for ETH.
