ETH Liquidation Layout
Short sellers are paying the bulls. Despite the number of long accounts being twice that of shorts, the funding rate remains at a negative 0.007%, indicating a more concentrated use of leverage on the short side.
The price has repeatedly failed to break through $2400. A successful breakout would force trapped shorts to cover, while the bottom of the ascending channel at $2200 keeps the situation dynamic in either direction.
Cascading Warning
“Ethereum is not rising; it is building momentum,” Palovaara stated. “Once it breaks through $2400, you will not only see buying pressure but also buying pressure that forces shorts to cover. This is the beginning of the cascading effect.”
With $31 billion in open contracts, even a 5% fluctuation can trigger billions in notional value changes across exchanges.
In the past 30 days, Ethereum has risen by 6.65%, and over 22% in the last 60 days. In just 24 hours, due to the accumulation of leverage on both sides, the funding loss reached $45.42 million.