Ethereum enters FTX-era stress: Is this structural deleveraging?

Ethereum’s Funding Rates collapsed to FTX-era extremes as derivatives absorbed a violent macro shock.

Rising U.S.–Iran tensions reignited risk aversion, pushing Ethereum [ETH] sharply lower while leverage amplified the move.

As price slid toward the $2300 level, forced selling accelerated, liquidating roughly $1.1 billion in ETH positions within a broader $2.5 billion market-wide wipeout.

Source: Darkforst/X

That pressure drove perpetual prices below their spot, forcing funding on Binance down to -0.028%.

Similar stress hit Bitcoin [BTC] over the weekend, sharing the same catalyst: geopolitical risk tightening liquidity.

Together, ETH and BTC reflected a deleveraging phase, where panic-driven flows dominated and market depth briefly vanished.

BitMine’s ETH position slips into structural drawdown

BitMine’s portfolio reflects acute stress as ETH trades near $2,415 against an estimated $3,800 weighted acquisition price.

The catalyst came from a sharp risk-off shock, driven by geopolitical tensions and forced deleveraging, which accelerated ETH’s 7-day decline of roughly 17.7%.

Source: Dropstab

That move pushed unrealized losses to about $5.9 billion on a $15.6 billion position. This drawdown nears 40%, signaling structural pressure rather than noise.

The cost basis now acts as gravity, not guaranteed support. The timing below it reflects liquidity withdrawal and sentiment compression.

A shift would require easing macro risk, renewed inflows, and sustained spot demand. The distance from the cost basis defines the current drawdown distribution.

At press time, Ethereum traded near $2,430–$2,450, extending an 8–9% daily drop as capital rotated out of risk assets and into safe havens like gold and silver.

That shift tightened crypto liquidity, and ETH absorbed the pressure quickly.

Failed breakout hints at bearish structure

Price failed to sustain a breakout above $3,400, then slipped back through the $2,780–$2,800 zone as momentum faded.

This rejection reflects more than tired bulls. Macro stress and deleveraging amplified the move, accelerating liquidations and reinforcing a lower-high, lower-low structure.

Source: TradingView

Momentum indicators confirmed the tone. Weekly RSI trended below neutral, signaling weakening demand rather than oversold relief.

Meanwhile, MACD remained negative and compressing, showing bearish momentum persists but may be slowing.

Support now clusters around $2,400–$2,600, where buyers test conviction.

A clean break risks a deeper slide toward $2,000–$2,200, while stabilization would require easing macro pressure and renewed spot inflows.

Final Thoughts

• Geopolitical risk drained liquidity, triggered $2.5 billion in liquidations, and dragged both ETH and BTC into a synchronized unwind.
• ETH’s slide below the ~$3,800 institutional cost basis left large holders facing a near 40% drawdown, turning that level into gravitational resistance while price probes fragile support near $2,400–$2,600.