Ethereum’s $2.1B Leverage Flush Was Not a Breakdown Signal: Here Is What It Actually Was
Ethereum is trading above $2,200. The recovery is real. And a CryptoQuant report has identified the structural event that made it possible — one that most participants were reading as a danger signal at the time it occurred. However, the broader trend remains fragile. ETH is still trading below its 50-day (blue), 100-day (green), and 200-day (red) moving averages, all of which are sloping downward. This alignment reflects sustained bearish control across multiple timeframes. Notably, the recent bounce toward $2,200 has failed to reclaim the 50-day average decisively, suggesting that momentum remains weak.Related Reading
Volume also provides important context. The spike during the February sell-off indicates forced liquidations rather than organic selling, which typically marks exhaustion. Since then, declining volume during consolidation suggests reduced participation, not yet renewed demand.
Structurally, ETH is forming a base, but not a reversal. A confirmed shift would require reclaiming the $2,400–$2,600 region, where the 100-day average currently sits. Until then, this remains a recovery attempt within a broader downtrend.
Featured image from ChatGPT, chart from TradingView.com
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