Ethereum (ETH) has lost $54 billion in market capitalization over the past three weeks as the asset slid roughly 15% and derivatives traders reduced their exposure. Total Ethereum open interest across exchanges has dropped to $11.5 billion, according to analysis by Darkfost shared on X — a metric watched closely as a gauge of how much leverage sits in the derivatives market. ETH was changing hands near $2,304.53 on October 26, with technical indicators pointing to continued selling pressure as the market tests a key support zone.

Open Interest Declines Across Major Exchanges

Open interest, which tracks the total value of outstanding derivatives contracts, has fallen broadly across venues. Binance, the largest market for ETH derivatives, recorded a $1.3 billion decline over the past month, taking its open interest to $5.7 billion, Darkfost reported. Other major platforms posted substantial decreases over the same 30-day window: Gate fell by $995 million, HTX lost $857 million, and Bybit declined by $310 million.

Even after the pullback, Binance remained the dominant venue, accounting for 50% of Ethereum's total open interest. Bybit held a 17.5% share, while Gate and OKX each accounted for 14.7%.

Darkfost attributed the broader decline to falling prices, liquidations, and traders closing positions to reduce risk. Because open interest only falls when contracts are closed or liquidated, the across-the-board drop reflects leverage being unwound market-wide rather than added. The analyst also noted that open interest fell more sharply in July. That deleveraging period preceded Ethereum's stabilization and a technical rebound exceeding 32%, which pushed ETH above $2,800 for the first time since January.

Bearish Momentum Builds Near $2,300

Data from a four-hour ETH/USD chart on Binance showed ETH trading at $2,304.53 on October 26, down $13.02, or 0.56%, on the latest candle. Ethereum traded around $2,700 in early October before falling below $2,600 and subsequently below $2,500.

Temporary rebounds lifted the price toward $2,550 around October12 and $2,510 on October 21, but sellers regained control each time and pushed ETH back toward $2,300.

Momentum indicators remain bearish. The Relative Strength Index (RSI), a momentum oscillator scaled from 0 to 100, stood at 36.68, below its moving average of 38.42 and short of the sub-30 readings conventionally labeled oversold. The MACD line remained below its signal line at -25.29 versus -22.21, with the histogram reading -3.08; the histogram measures the gap between the two lines, so the negative print confirms the MACD is trailing its signal line.

$2,250 and $2,200 in Focus

Ethereum is currently testing support near $2,300, and a breakdown below that level could expose the $2,250 and $2,200 zones. On the upside, resistance is located around $2,350–$2,400, followed by $2,500.

Darkfost described deleveraging as part of the correction process, noting that such periods can bring fear to the market and sometimes precede a final correction phase. With price and positioning data converging on the same zone, how ETH behaves at $2,300 — and whether open interest steadies alongside it — will be the next markers for judging how far the current deleveraging phase has run.