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      Ethereum Market Structure Strengthens Following Major Liquidations on Binance

      The Ethereum futures market has shown signs of improvement following a significant liquidation event on Binance, where approximately $345 million in long positions were liquidated during a sell-off on October 8-9, 2026. According to analysis from CryptoQuant, this event has reset leverage levels and enhanced the overall market structure, although the market still lacks essential stablecoin inflows to fully support a bullish trend.

      During the sell-off, Ethereum's price dropped about 10%, falling from around $2,775 to approximately $2,500. This decline triggered a 47% increase in long liquidations on Binance, leading to funding rates nearing zero. Such low funding rates indicate a thinning of long positions, contrasting with previous periods of crowded optimism. Despite a 4.7% decrease in Binance's ETH futures open interest over the past month, the exchange's share of the total market has risen to 49%, the highest level since 2023.

      While the dollar-denominated open interest has decreased, the ETH-denominated open interest has rebounded to approximately 2.46 million ETH, suggesting that traders are beginning to reopen positions rather than exiting the market entirely. However, Binance's USDT reserves saw a net outflow of about $175 million, which CryptoQuant describes as a neutral condition rather than a bullish one. The lack of fresh capital is a concern, as it indicates that while the market has stabilized, it lacks the necessary momentum for a sustained recovery.

      Traders are advised to monitor two key indicators: the flow of USDT reserves back into exchanges and the Coinbase Premium, which reflects demand from U.S. buyers. A rising Coinbase Premium could signal renewed institutional interest, while stable funding rates and increasing ETH-denominated open interest would further support market recovery.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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