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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.
Source: KLEA News