Opinion: ETH deleveraging nears its end, a rebound opportunity lurks within the panic.

October 25 - CryptoQuant analyst Darkfost stated that over the past three weeks, altcoins, especially Ethereum, have been generally weak, with ETH retracing about 15% and its market capitalization evaporating by approximately $54 billion. The derivatives side is even more pronounced, with ETH open interest on Binance decreasing by about $1.3 billion in a month, a drop of nearly 20%, falling back to around $5.7 billion. Total open interest across the entire market has dropped to about $11.5 billion.

Darkfost analyzed that the widespread deleveraging in the market stems from liquidations triggered by price declines, as well as traders actively reducing positions. In July, open interest saw an even larger decline, after which ETH experienced a technical rebound of over 32%, with the price returning above $2,800. This type of deleveraging is often accompanied by market panic and frequently appears at the end of a correction.