Ethereum falls 6%, leaving $1.35 billion in long bets at risk of liquidation

Ethereum’s descent toward the $2,500 threshold has placed approximately $1.35 billion in leveraged long positions in jeopardy of being liquidated.

According to figures from CoinMarketCap, about $1.35 billion in ETH long exposure is situated at liquidation prices underneath the current market value. Meanwhile, roughly $999.78 million in short positions remain vulnerable above it. Rather than sitting at a single price point, these figures are spread across multiple lower tiers.

The nearest danger zone is quickly approaching. CoinMarketCap reported that approximately $112.83 million in ETH longs on Hyperliquid are lined up for liquidation near $2,511. With Ethereum trading at $2,605.65, the gap to that threshold shrank to about 3.6%, down from a 7.4% buffer just a day prior.

This heightened risk follows a 5.9% drop in ETH over a 24-hour period, bringing its price to $2,570 as of press time, based on CryptoSlate’s metrics. The decline broke Ethereum out of the $2,700 trading range that had previously held firm despite days of ongoing institutional sell-offs.

ETH longs take the first hit as $2,500 comes into focus

Market data reveals that the recent downward price break sparked a rapid wave of forced closures before Ethereum even reached its primary cluster of liquidations.

CoinGlass statistics indicate that $233.36 million in total ETH positions were liquidated within 24 hours. Long traders bore the brunt of these closures, accounting for $221.87 million, or roughly 95% of the aggregate amount.

Out of that total, about $226.22 million was wiped out over a 12-hour span, which included $216.11 million in long exposure.

Significantly, Ethereum recorded the largest single liquidation across the entire cryptocurrency market: a $26.64 million ETHUSDC position on Binance that was forcibly closed.

Because of these heavy losses, the remaining liquidation map carries greater significance. Liquidation maps do not guarantee that every highlighted position will automatically be closed; instead, they illustrate the price thresholds where leveraged trades become progressively more exposed as the market moves.

If prices continue to slide toward $2,500, it will test whether the initial wave of liquidations successfully flushed out enough leverage to stabilize the market, or if another layer of vulnerable long positions lies beneath.

Even so, current positioning indicates that market risk persists.

Data from CoinGlass showed a long-to-short ratio of 3.32 among Binance ETH/USDT accounts, alongside a 2.13 ratio on OKX. Binance’s top traders also leaned heavily toward long positions, registering a 2.34 ratio when counted by accounts and 1.62 when measured by total positions.

While these figures do not disclose the exact capital amounts tied to each side, they demonstrate that bullish sentiment remains widespread, even after the eradication of more than $220 million in long bets.

At the same time, funding rates have shifted into negative territory.

CoinGlass metrics show Ethereum’s open-interest-weighted funding rate at -0.0041%, while the volume-weighted rate sits at -0.0034%. A negative funding rate reflects higher demand for short exposure, requiring short sellers to pay long traders in order to keep perpetual futures positions open.

This dynamic creates the potential for overcrowded trades on both sides of the market if traders continue buying the dip while others stack up short positions following the breakdown.

ETF withdrawals remove another source of support

The downward pressure on Ethereum’s price is occurring simultaneously with a steep drop in demand for U.S. spot Ether ETFs.

On Oct. 6, these exchange-traded funds suffered roughly $202 million in net outflows, marking their largest single-day withdrawal since Sept. 16. This pushed the current outflow streak to six consecutive sessions, bringing the cumulative total pulled during this period to approximately $408 million.

These recent withdrawals also represent a sharp acceleration in pace. Investors pulled nearly $206 million across the prior five sessions combined, meaning the outflows on Oct. 6 alone nearly matched that entire amount.

Earlier on, Ether successfully absorbed these redemptions while hovering near $2,700, indicating that ETF selling was not immediately driving prices down. That resilience has now cracked under the weight of fresh, heavy outflows as ETH drops closer to $2,500.

Despite this recent downturn, SoSoValue records show these funds have accumulated $13.55 billion in total net inflows since their inception, making the latest withdrawals a relatively minor reversal within a much broader pool of institutional capital.

Nevertheless, the ongoing outflows shift attention to whether institutional players will view lower price levels as an attractive entry point or continue scaling back their exposure.

If redemptions persist, they will strip away a vital source of spot market demand just as Ethereum struggles to reclaim its previous trading range. Conversely, a turnaround in fund flows could signal that investors view the pullback as a buying opportunity rather than the beginning of a prolonged correction.

Frequently Asked Questions

• What caused Ethereum’s recent drop? Ethereum fell toward $2,500 amid a sharp acceleration in US spot Ether ETF outflows—including a $202 million withdrawal on Oct. 6—and growing pressure on leveraged long positions.
• How much in long positions is at risk? Approximately $1.35 billion in leveraged long positions sit at liquidation levels below the prevailing market price.
• What are negative funding rates indicating? Negative funding rates show stronger demand for short exposure, with short sellers paying long traders to maintain their perpetual futures positions.