Ethereum’s price is showing signs of strain despite a small upward move, as rising futures open interest and weakening momentum point to potential liquidation risk across the market.
Over the past 24 hours, ETH has gained around 1%–1.5%, adding roughly $40–$45 per token. Even so, trading has stayed relatively contained, with prices moving between $3,160 and $3,260 during the day. The bounce hasn’t been strong enough to push Ethereum back above its major trend markers — the 100-day and 200-day moving averages — which continue to cap any meaningful breakout attempts.
Earlier, Ethereum briefly broke above a descending trendline that had acted as a barrier throughout recent sessions. The move looked promising at first, but buyers were quickly rejected at the same resistance zone that stopped rallies in early November. The failure to hold above that level has put bulls on the defensive once again.
One bright spot is a nearby bullish order block, which now lines up with the recently broken trendline. This area is shaping up as an important decision zone: if buyers defend it, ETH may attempt another push upward; if not, the market could be vulnerable to sharper declines.
Momentum indicators are also cooling off. The Relative Strength Index (RSI), which recently stood in overbought territory, has slipped lower, reflecting a slowdown in buyer strength. Former resistance levels have turned into minor support, but the lack of strong follow-through suggests hesitation among traders.
The bigger concern, however, comes from the futures market. Open interest in Ethereum futures has been climbing steadily, even though price movement remains muted. Historically, this combination — rising open interest and flat price action — often precedes sharp liquidations when leveraged positions unwind.
Analysts warn that when open interest grows faster than price, it usually signals speculative bets piling up without real spot demand behind them. This kind of build-up increases the risk of sudden, volatile moves in either direction, especially if the market is caught off-balance.
For now, Ethereum remains stuck below its key moving averages, and traders are watching closely to see whether support holds. If the bullish order block gives way, downside pressure could intensify — but if buyers step in strongly, ETH may avoid another round of liquidation-driven turbulence.
Also Read: Ethereum Traders Brace for Liquidation Risk as Open Interest Jumps
