Crypto
Ethereum Price's Brush With 2026 Lows Threatens $930M Longs
Ethereum stands at a decisive point as bullish signals strengthen, but a key support breakdown could quickly change everything.
2h ago 4,280
BLOCKINSIDERLoadingEthereum stands at a decisive point as bullish signals strengthen, but a key support breakdown could quickly change everything.
Ethereum traders positioned for gains now face a nervous wait. Nearly $930 million dollars in leveraged bets sit precariously close to being wiped out.
The trigger would be surprisingly simple: a return to the levels ETH left behind weeks ago. What happens next could swing hard either way.
Crypto analyst Joao Wedson highlighted a build-up of leveraged long positions on Ethereum in a recent post. He warned that these long clusters around levels ETH haven’t been revisited since late June.
Wedson's analysis points to a familiar pattern. Traders piled into longs as ETH climbed, but that same climb now creates a liquidation cliff below current prices.
Nearly $930 million in longs have accumulated since ETH rallied from its 2026 low of $1,505 in late June. CoinGlass data shows these positions face liquidation if the price revisits that zone.
Interestingly, the broader outlook isn't as bearish as the liquidation risk suggests. ETH's rally from $1,505 came right as Profitable Supply hit 28.3%, its lowest since March 2020.
Profitable Supply measures the percentage of ETH held in profit. Readings this low typically mark market bottoms, since most holders are underwater and selling pressure has largely exhausted itself.
Conversely, market tops usually show Profitable Supply near 100%, when nearly every holder sits in profit. That combination often precedes heavy profit-taking and sharp reversals lower.
With Profitable Supply this depressed, ETH's bounce looks more like an early recovery than a fragile bull trap. Historically, such extreme lows have preceded sustained upward moves.
Long-term holders also appear firmly supportive of this recovery attempt right now. HODLer net position change data shows rising inflows into LTH wallets recently.
This follows more than two weeks of consistent outflows from long-term holder wallets. That reversal suggests conviction is returning among Ethereum's most influential holder cohort.
LTHs carry outsized influence over price action, given their size and low tendency to panic-sell. Their accumulation often precedes broader market stabilization and renewed upside.
If this LTH inflow trend holds, ETH could gain enough support to avoid revisiting the $1,505 liquidation zone entirely. That would spare the $930 million in longs currently at risk.
Ultimately, Ethereum's next move hinges on whether long-term conviction outweighs short-term liquidation pressure. Early signals suggest the bulls, for now, retain the edge.
Ethereum trades at $1,780 and is attempting to validate a double-bottom pattern, a formation often associated with bullish trend reversals. The cryptocurrency is approaching the breakout level after defending key support.
A confirmed breakout could activate the pattern's 22.8% upside target, placing Ethereum above $2,200. Sustained buying volume and improving market sentiment would strengthen the probability of this bullish scenario unfolding during the coming sessions.
The immediate resistance to monitor sits at $1,900, slightly above the 61.8% Fibonacci retracement level, which many traders view as a bull market support threshold. Reclaiming this level would strengthen Ethereum's technical structure and improve bullish momentum.
Such a move could pave the way toward the 78.6% Fibonacci level near $2,000. A successful breakout there would reinforce expectations of continued price appreciation.
The bullish outlook would weaken if broader market sentiment deteriorates and selling pressure intensifies. Losing support at $1,655, aligned with the 23.6% Fibonacci retracement level, could expose Ethereum to a decline toward $1,505.
Such a move would establish a new 2026 low and increase downside risks. It could also trigger approximately $930 million in long liquidations, accelerating volatility across the Ethereum market.
No comments yet
Be the first to share your take when accounts launch.
