Ethereum Faces $8.71B Liquidation Risk as ETH Price Tests $2,350 – Is Another Flush Ahead?

As the crypto market has come under extreme bearish influence, the Ethereum price plunged hard and is now testing a crucial support range. The second-largest token is approaching the $2,350 zone, while a wave of long liquidations has added weight to the persistent pressure. The sell-off has also raised concerns about weakening investor demand, with recent ETH ETF outflows adding another challenge for bulls. 

In times when the derivatives market is also presenting a complicated picture, the focus now shifts to whether the ETH price can defend $2,350 or tank down below $2,200.

Ethereum Open Interest Falls 11% as ETH Positions Hold Steady

Ethereum’s price has taken a hit, but traders have not significantly reduced their positions in ETH, according to data from Santiment. Between October 04 and October 14, ETH fell around 11%, while its dollar-denominated open interest dropped by roughly the same amount. This suggests that the derivative market has cooled along with the decline in price. 

The amount of ETH tied to outstanding derivative contracts stood at 6.23 million on both days, fluctuating between 5.97 million & 6.47 million during the period. However, this does not mean that the traders are betting on recovery, but the traders’ position change of around $2,350 could offer clues about the next moves. 

Ethereum Liquidation Map Shows a Sharp Drop in Sell-Side Liquidity

Ethereum’s liquidation map points to a notable imbalance between potential short and long liquidations. The sell-side liquidity below the current price appears significantly weaker than the potential liquidation pool above it. The sharp decline in long-liquidation exposure suggests that much of the potential downside liquidation has already been cleared as ETH fell. 

At the reference price of $2,368, the chart estimates approximately $676 million in cumulative long-liquidation leverage below the market. Meanwhile, there is $8.71 billion in potential short liquidation exposure above it, suggesting that a substantial amount of the mapped liquidation exposure sits on the upside. A sustained move higher may force bearish traders to close their positions, but if ETH loses the $2,350 support zone, $2,000 could be the next level to watch, keeping the bearish momentum intact. 

ETH Price Weakens as Sellers Target $2,200

The Ethereum price is showing signs of weakness after pulling back from its local highs near $2,800. Currently, it is trading around $2,386, with the $2,350 to $2,400 area emerging as an important support area. The latest candle has pushed into this region, putting the focus on whether buyers can defend it, preventing an extended pullback. 

The RSI has dropped and is moving closer to the oversold territory, hinting towards fading momentum. Besides, the CVD shows aggressive selling that places the ETH price at a crucial juncture; hence, a breakdown could open the door to further losses. A rebound above $2400, followed by a sustained move above $2,430, could help ease the immediate selling pressure. 

Can the Ethereum Price Defend the $2000 Support Zone?

Ethereum price faces a critical test near $2,350, with weakening momentum and ETF outflows keeping the risk of a drop toward $2,200 in focus. A sustained break below $2,350 could strengthen the bearish case, while a recovery above $2,400 to $2,430, supported by renewed buying, could improve the bullish outlook and open the door to a short squeeze. The estimated $8.71 billion in potential short-liquidation exposure adds to the possibility of a sharp rebound. ETH’s next move will depend on whether buyers defend support or sellers push the price lower.