TLDR
- Ethereum price stabilizes near $2,500 after heavy liquidations forced leveraged traders to close positions.
- Ether long liquidations exceeded Bitcoin’s as the broader crypto market faced over $1 billion in losses.
- Analyst Daan Crypto Trades identifies reduced open interest as a possible sign of short-term recovery.
- Ethereum ETF outflows continue to weigh on market sentiment despite improving conditions in futures trading.
- Traders monitor spot buying demand as Ethereum price approaches a crucial resistance level near $2,500.
Ethereum (ETH) traded near $2,500 on October 9 after a sharp selloff forced many leveraged traders to close positions. The Ethereum price recovered from a midweek low near $2,406, although buyers had yet to establish a clear recovery.
$ETH The move indeed wasn’t done yet as per the initial tweet.
It can be very enticing to buy the blood after the initial candle, but when price keeps grinding down and there has been no proper flush, very rarely does it turn around. Usually it is just anticipation before the… https://t.co/bM2GkQ1PBI pic.twitter.com/tQBqrGq6Wr
— Daan Crypto Trades (@DaanCrypto) October 9, 2026
The sudden drop followed several days of growing bets on higher prices. When ether moved lower, exchanges closed positions that lacked enough funds to cover their losses, adding to selling pressure.
Ethereum Price Finds Stability After Selloff
Market data showed more than $1 billion in crypto positions liquidated during Thursday’s decline. Ether accounted for a larger share than bitcoin, as traders using borrowed funds faced heavy losses across major exchanges.
The latest liquidation figures showed Ether losses exceeding Bitcoin’s despite the difference in market size. That selling cleared many short-term bets, but the recovery remained limited as traders assessed whether cash buyers would return.
Analyst Tracks Changes in Trader Positions
Trader Daan Crypto Trades warned on October 7 that ether kept making fresh lows while active futures positions continued rising. He also reported heavy selling in the regular spot market, suggesting the decline could continue.
After Thursday’s fall, Daan said the market had finally cleared many bets on rising prices. He described the drop in active positions as a possible early sign of a local recovery, not proof of a lasting rebound.
His October 9 update pointed to flat funding rates and little increase in futures positions during the bounce. Earlier reports on Ethereum ETF withdrawals also showed that selling pressure extended beyond leveraged trading.
Spot Trading Sets Next Direction
Other market accounts reported growing ether long positions on Bitfinex despite the drop. They also identified possible forced closures of bearish bets above current prices, although such trading maps cannot predict when orders will trigger.
US spot ether funds continued to face redemptions. A separate report on fund outflows tracked seven consecutive sessions of withdrawals, adding another measure of demand as prices settled near their recent lows.
The Ethereum price now faces a test around $2,500. Buying through regular exchanges could support the rebound, while renewed selling could bring recent lows back into view. Daan said the next move would depend on spot trading rather than fresh leveraged bets.
