Ethereum is showing signs Leverage has reset after high leverage long positions were nearly wiped out, but the broader chart still shows a fragile recovery. Although long flashes may reduce bullish overcrowding, $ETH It is still stuck in a weak technical structure that could face a pullback before the trend reverses.
Ethereum long liquidations surge as market focuses on short positions
According to a chart shared by market commentator CW on X, high leverage long positions in Ethereum appear to have been nearly wiped out. The post states that almost all had high leverage. $ETH Long positions were liquidated and attention shifted to short positions. The chart, which appears to track liquidation pressure over time, shows long-term exposures rising and being liquidated as prices fall.
Ethereum Liquidation Leverage Chart: Source: Coin Ankh/CW/X
The post also references an earlier update from March 21, in which The CW stated: $ETH Short positions were similar to the previous day, while long positions increased slightly. At the time, the view was that most of these longs would eventually be liquidated. A new post suggests that move is almost here.
In market terminology, long liquidations occur when traders using borrowed funds bet on a higher price, but the market moves against them, forcing them to close out their positions. This process could accelerate the downside, as a forced sell would add further pressure to an already weak move. Therefore, a long wave of liquidations often shows a sudden flash in sentiment as bullish traders get pushed out.
Now the focus seems to have shifted to the other side of the market. When traders start talking about short liquidations, they usually mean that their bearish positions could become vulnerable if the price reverses higher and short sellers are forced to buy back. $ETH. This type of move can cause a quick rebound, especially after a large long-term wipeout removes excess leverage from the market.
For now, the chart indicates that Ethereum’s leverage has been reset rather than confirming a trend reversal. The main takeaway is that bullish overexposure appears to have decreased significantly. As a result, traders are now $ETH Will it stabilize after the long flash, or will the market create conditions that will put pressure on the shorts next?
Ethereum looks vulnerable as chart shows attempted pullback within broader downtrend
Ethereum is trying to recover from the recent selloff, but a broader chart shared by More Crypto Online still shows a fragile structure. daily $ETHThe /USD chart shows a sharp decline towards the March lows, followed by a small rebound that looks more corrective than definitive. Although the price is hovering around $2,155 on the chart, analyst roadmaps suggest that Ethereum is still in an early recovery stage within a broader bearish setup.
Ethereum daily wave structure chart: Source: more crypto online
This chart shows ABC’s rebound potential from its recent lows. In this structure, wave A is pushing the price up off the low, wave B is pushing the price back, and wave C is now trying to extend the price higher. However, the expected upside zone lies between approximately $2,617 and $3,342, which is treated on the chart as a resistance area rather than a confirmed breakout area. This means that even if Ethereum moves higher from here, the rally could still face strong selling pressure before the overall trend changes.
At the same time, the chart highlights a lower support area between approximately $1,821 and $1,600. If the rebound fails, that zone becomes important. In other words, this move looks less like a complete trend reversal and more like a test to see if buyers can build enough strength to recover some of the earlier decline. This structure still favors caution until Ethereum confidently clears significant resistance levels.
The broader pattern also shows that Ethereum remains well below the major highs seen earlier in the cycle. Previous downside waves on the chart have been larger and more aggressive than the current rebound, making the outlook even more fragile. As a result, the market appears to be at a technical crossroads, and while there is still potential for a limited rebound, downside risks remain if support breaks down again.
