Ethereum Leverage Reset Complete – Is It Time for Market Re-Accumulation?

Ethereum is currently priced at approximately $3,000, following a recent upswing in the broader cryptocurrency market. Over the past week, this major altcoin surged by 7.22%, providing relief after a protracted correction that persisted for most of the last two months. As prices stabilize, cryptocurrency analytics platform XWIN Research Japan offers a positive assessment of Ethereum’s future, especially in light of emerging conditions in the futures market.

Key Takeaways

Ethereum is currently trading around $3,000 after a 7.22% increase in the past week.
The cryptocurrency has experienced a 38% decline from its recent highs, with significant shifts in futures market activity.
Major investors, including Ethereum Treasury BitMine and a BlackRock client, are increasing their holdings, indicating strong demand.
Despite recent gains, Ethereum is still down 22.34% over the last month, with many short-term holders at a loss.
Analysts predict a "bottom-building phase," suggesting that investors should be prepared for volatile price action in the short term.

Ethereum Bulls Step In After Weak Positions Exited

During a widespread correction in the cryptocurrency market in Q4 2025, Ethereum’s value plummeted from $4,700 to as low as $2,900—a notable 38% drop. According to XWIN Research Japan, this price decline coincided with significant changes in the futures market.

The open interest in Ethereum across all exchanges fell from $21 billion to around $17 billion by late November, as many overleveraged long positions were liquidated, prompting traders to adopt new positions with more moderate leverage. Additionally, funding rates have remained positive but decreased to about 0.002, indicating a diminished bullish sentiment that had prevailed since mid-2025.

Ethereum Source: CryptoQuant

Looking at on-chain data, the Market Value to Realized Value (MVRV) has reached 1.27, whereas Binance shows a value around 1.0. Both figures suggest that Ethereum is between a neutral and fair value zone, implying a phase of stability before the next significant trend develops. The recent market recovery started after ETH tested the realized price of whale addresses, showing that large market participants are increasing their holdings.

XWIN Research Japan supports this view, noting that Ethereum Treasury BitMine has raised its market holdings to 3.63 million ETH. Furthermore, a BlackRock client recently purchased tens of millions of dollars in ETH, further strengthening current market demand. However, ETH Spot ETF net outflows in November totaled $1.42 billion, which suggests that there is considerable selling pressure still present in the market.

Current Outlook for Ethereum

As of now, Ethereum's price stands at $3,003, reflecting a slight loss of 0.22% within the past day. Despite its recent week-long gains, the altcoin has fallen by 22.34% over the past month, implying that many short-term holders are experiencing losses.

XWIN Research Japan points out that while the overleveraged positions have been cleared and market whales are increasing their holdings, Ethereum remains in what is described as a "bottom-building phase.” Hence, investors should prepare for a "choppy, sell-on-rally" pattern in the near term. Analysts anticipate a significant trend reversal over time, as the current price range becomes more appealing for investors seeking major accumulation opportunities.

Ethereum ETH trading at $3,003 on the daily chart | Source: ETHUSDT chart on Tradingview.com