1.2M Ethereum stacked, $5B Open Interest wiped out – Can ETH rebound?

Key takeaways

Why is Ethereum seeing record accumulation right now?

Because LTHs and possibly ETF-linked entities added over 1.2 million ETH recently and nearly 400K ETH on the 25th of September.

How does the Open Interest reset impact ETH’s outlook?

With over $5 billion in leverage wiped out, ETH may now have room for a more stable and sustainable recovery.

Ethereum’s [ETH] market is sending mixed but fascinating signals.

On one hand, long-term holders (LTHs) are scooping up ETH at a pace not seen before. On the other, Open Interest (OI) has taken a steep dive, with billions in leverage flushed out in just days.

Can this clean slate help with a healthier, more sustainable moves ahead?

Accumulators step in

Data from CryptoQuant showed that on the 18th of September, inflows into accumulator addresses surged to a record-breaking 1.2 million ETH.

This is the highest level in the network’s history.

Source: CryptoQuant

On the 25th of September, another 400,000 ETH were added in a single day. These wallets, which only buy and never sell, are showing conviction, much like long-term investors or institutions.

The timing is notable, too: with ETH ETFs attracting fresh demand, it’s possible that some of these large inflows are by entities preparing for sustained exposure rather than short-term speculation.

Open Interest takes a big hit

While accumulation wallets are stacking ETH, the derivatives market is giving different signs.

Source: CryptoQuant

After weeks of aggressive positioning, OI just experienced one of its sharpest resets since early 2024. On the 23rd of September alone, Binance saw over $3 billion in OI wiped out, followed by another $1 billion the next day.

Bybit and OKX also faced significant declines, losing $1.2 billion and $580 million, respectively. This correction followed a surge in leveraged bets on ETH, which had become a focal point for speculative trading. 

The silver lining? With excess leverage flushed out, the market may now have room to stabilize, and potentially set the stage for a healthier recovery.

What’s next for ETH?

Source: TradingView

Technical indicators suggest the market may be cooling off.

The Relative Strength Index (RSI) has dropped to 33, signaling oversold conditions. Meanwhile, the MACD remains in negative territory but is beginning to flatten, hinting at a potential shift in momentum.

If buying pressure builds, ETH could regain stability above the $4,000 mark.  As it stands, the setup points to a possible healthy reset, provided key metrics continue to align.