Ethereum price bulls face liquidation risk as open interest climbs

Ethereum price is trading below key moving averages as rising futures open interest and flat price action flag liquidation risk and heightened two-way volatility.​

Ethereum price is up roughly 1–1.5% over the past 24 hours, adding about 40–45 dollars per coin. The 24h range sat roughly between $3,160 and 3,260 per token, showing contained but active trading.

The cryptocurrency remains below its 100-day and 200-day moving averages despite breaking above the trendline, the analysis stated. The recent price action showed rejection from the same resistance zone that limited gains in early November.

Ethereum price increases

Technical indicators suggest potential support near a bullish order block that aligns with the recently broken trendline, according to the report. On shorter timeframes, Ethereum (ETH) broke above a bearish trendline but encountered immediate resistance and fell back below prior levels.

The Relative Strength Index has declined from overbought conditions, indicating weakening momentum, the analysis noted. Previous resistance levels have converted to minor support zones, though recent price action displayed limited follow-through.

Open interest in Ethereum futures contracts has risen gradually and remains at elevated levels while the price has shown modest recovery, according to market data. Historical patterns indicate that rising open interest combined with flat or declining prices has preceded significant price movements in either direction.

When open interest increases faster than price, it typically signals aggressive speculative positioning that can lead to liquidations, the analysis stated. The current market structure suggests heightened risk without corresponding spot market demand, according to the report.

Ethereum traded below key moving averages as of the latest data, with technical analysts monitoring whether the cryptocurrency can sustain support levels or face further downside pressure.