Decoding Ethereum’s stalled rebound as Bitfinex longs defy $542M ETF outflows

After holding the key support near $2250 for two days, Ethereum [ETH] sellers regained the market control, accelerating further downward. The level was the last support holding the structure after the altcoin fell outside the range it had been trading in since the last week of September.

The altcoin’s downward momentum continued before halting near the $2400 support. Bulls then regained momentum, igniting a rebound back above $2500 at $2519. Since then, the upside momentum has stalled near the $2500 mark.

Meanwhile, the spot volume has been declining dramatically, as weekly ETF outflows still remain high near $542 million, suggesting demand remains weak. Heavy liquidations, dominated by leveraged longs, further accelerated the decline.

Therefore, looking ahead, $2,408 remains critical, as another breakdown below that support could expose $2,350–$2,400.

Conversely, reclaiming $2,560 would signal improving demand and open a recovery toward $2,625, potentially restoring confidence and reducing downside pressure.

ETH Open Interest signals liquidation risk

Elsewhere, Ethereum’s price recovery now faces another hurdle. According to Alphractal’s derivatives positioning data, major traders’ confidence is declining.