Ethereum Price Bulls Face Liquidation Risk as Open Interest Climbs

Source: Cryptonews Original Title: Ethereum price bulls face liquidation risk as open interest climbs Original Link: https://crypto.news/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.

Summary

• Ethereum price briefly broke a descending trendline and tested resistance before rejection, staying capped under its 100-day and 200-day moving averages.
• RSI has cooled from overbought while a nearby bullish order block and prior resistance turned support define the key zone to watch for a bounce or breakdown.
• Futures open interest is elevated despite modest price recovery, a structure that has historically preceded sharp liquidations when speculative positioning unwinds.

Price Action Overview

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 recent price action showed rejection from the same resistance zone that limited gains in early November.

Technical Analysis

Technical indicators suggest potential support near a bullish order block that aligns with the recently broken trendline. 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. Previous resistance levels have converted to minor support zones, though recent price action displayed limited follow-through.

Futures Market Structure Risk

Open interest in Ethereum futures contracts has risen gradually and remains at elevated levels while the price has shown modest recovery. 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 current market structure suggests heightened risk without corresponding spot market demand.

Outlook

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.