Ethereum Dips Below $2700 Amid Profit-Taking Pullback

What the Derivatives Data Shows

Ethereum-denominated open interest (OI) has stayed relatively stable since a short squeeze in late August. OI measures the total value of unsettled derivatives contracts. Rising OI suggests traders are committing more capital, while a decline indicates positions are closing out.

Ethereum has climbed approximately 70% since its late June low, while dollar-denominated open interest increased about 60% to $34.8 billion over the same period. That slower growth in OI relative to price suggests a spot-led rally rather than one driven by leverage, which tends to be more sustainable.

Even so, derivatives traders remain cautious. An increase in open interest alongside a price breakout could add momentum, but rapid growth in leveraged long positions would also heighten downside risk if ETH reverses.

Network Usage Hasn’t Followed the Price

Ethereum’s on-chain activity tells a different story than the price chart. The number of active addresses has remained largely unchanged over the past three months, a metric that reflects real user engagement on the network. Total mainnet transaction count declined over the same period.

Historically, sustained bull markets tend to align with rising address activity and transaction demand. This divergence raises real questions about how much fundamental support is actually behind the current recovery. Increased network use typically reflects growing participation in DeFi, stablecoin transfers, and NFTs, and the current lack of growth suggests a disconnect between price and usage.

The Liquidation Numbers

Ethereum’s decline triggered approximately $111.70 million in derivatives liquidations within 24 hours, according to CoinGlass. Long positions accounted for $97.6 million of that total, meaning traders betting on further gains absorbed most of the losses.

• A long liquidation happens when a leveraged bullish position no longer meets margin requirements as the market falls
• The exchange automatically closes the position, which adds further selling pressure
• The scale here suggests some traders increased bullish exposure near recent highs despite the subdued open interest data

While liquidations can accelerate short-term declines, the market may stabilize once the more vulnerable leveraged positions get cleared out, assuming spot buyers step back in around key support levels.

Levels Worth Watching

Ethereum’s daily chart maintains a bullish bias as its price stays above several important exponential moving averages. After being rejected at $2,786, immediate support sits just above $2,626, a level that will test whether buyers can preserve the short-term uptrend.

Below $2,626, a demand zone forms near the 20-day EMA at $2,549 and horizontal support around $2,544, an area that could act as a stronger defensive zone. Further support lies around $2,431, followed by the 50-day EMA near $2,368. A sustained drop below these levels would significantly weaken the current bullish structure.

On the upside, ETH needs to reclaim $2,786. A confirmed breakout could open the path toward $2,894, then a larger barrier around $3,177. The Relative Strength Index and Stochastic Oscillator are both cooling, suggesting momentum is easing, which could actually provide a healthier foundation for another advance if support holds at $2,626.