CryptoQuant data shows a cleaner ETH futures market after roughly $345 million in long liquidations, but stablecoin inflows remain the missing piece
Ethereum ’s market structure is showing signs of improvement following a reduction in leveraged positions on Binance, but the lack of fresh buying pressure continues to limit its recovery prospects, CryptoQuant analyst CryptoOnchain said in a recent note.
The second-largest crypto asset is trading at around $2,500, down 1% over seven days, with its overall on-chain score near zero, signaling a neutral market outlook.
According to CryptoOnchain, Binance open interest declined 4.7% in a month to roughly $6.1 billion, accounting for about half of total market open interest. Long liquidations increased 47%, pointing to a shakeout of leveraged bullish bets, while funding rates remained close to zero.
Supply-side indicators are more supportive. ETH reserves on Binance have declined 2.4%, reducing the amount of Ethereum held on the exchange that could potentially be sold, the analyst noted. The staking rate stands at about 36.1%, reflecting a high level of participation in staking.
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Demand indicators, however, remain weak. USDT reserves on Binance have fallen 2.3%, while stablecoin netflows show an outflow of approximately $175 million, suggesting fresh buying power is not entering the market, CryptoQuant said. The Coinbase Premium is pointing to subdued institutional demand, while Ethereum network transactions have declined 4%.
The latest data suggest that excess leverage has been cleared, leaving a more stable market structure but no immediate catalyst for a sustained rally, according to the analyst.
Ethereum’s outlook could improve if stablecoin liquidity returns to Binance and the Coinbase Premium turns positive. Until then, neutral on-chain conditions and weak demand indicators continue to constrain the bullish case, he added.