Ethereum Price Bulls Encounter Liquidation Risks as Open Interest Rises

Ethereum bulls face liquidation risk as open interest climbs

Summary:
Ethereum's price is currently trending below key moving averages, with a notable increase in futures open interest that signals potential liquidation risks and heightened market volatility. This report explores recent price movements and technical indicators surrounding Ethereum.

Key Takeaways:

Ethereum's price has increased by approximately 1–1.5% within the last 24 hours, fluctuating between $3,160 and $3,260.
The cryptocurrency remains below both its 100-day and 200-day moving averages, signaling potential resistance levels.
Technical analysis suggests support may be found near a recently broken trendline, yet the Relative Strength Index indicates weakening momentum.
Rising open interest in Ethereum futures points to heightened liquidation risks, especially if there is no corresponding demand in the spot market.

Current Ethereum Price Trends

Ethereum's price has seen a modest increase of about 1–1.5% over the last day, adding roughly $40–$45 to its value. The trading range has been between $3,160 and $3,260 per token, indicating active but contained trading activity.

Tom Lee's Perspective:

Bitmine Chairman Tom Lee expressed at the Binance Blockchain Week on December 4 that Ethereum priced at $3,000 is significantly undervalued, attributing the current downturn in the crypto market more to deleveraging events rather than other factors.
— Wu Blockchain (@WuBlockchain) December 12, 2025

Despite surpassing a trendline, Ethereum has remained below its key 100-day and 200-day moving averages. Recent price movements show a rejection from the same resistance area that previously restricted price gains in early November.

Ethereum's Price Dynamics

Technical analysis indicates that there could be support located near a bullish order block that corresponds with the broken trendline. On shorter timeframes, Ethereum did rise above a bearish trendline but met immediate resistance, resulting in a return to prior lower levels.

The Relative Strength Index has dipped from overbought territory, suggesting that momentum is weakening. While earlier resistance levels have transitioned to minor support areas, the latest price activity has not demonstrated substantial follow-through.

Ethereum price bulls face liquidation risk as open interest climbs - 1

Recent data reveals an upward trend in open interest for Ethereum futures contracts, which has reached elevated levels. Historical trends have shown that a rise in open interest alongside flat or declining prices often precedes significant price fluctuations in either direction.

When the increase in open interest outpaces price growth, it often indicates aggressive speculative trading, increasing the likelihood of liquidations. This current market condition suggests an increased risk of downward pressure on Ethereum without a corresponding demand in the spot market.

As of the latest updates, Ethereum is trading below its crucial moving averages, and technical analysts are observing whether it can maintain current support levels or if it will face further declines.