Analyst: ETH Market Cap Erodes by $54 Billion Over Nearly Three Weeks, This Correction May Be Nearing Its End

Odaily reports: Crypto analyst Darkfost posted that this round of deleveraging was driven by a combination of price declines, cascading liquidations, and traders actively closing positions to reduce risk. Looking back at July of this year, Ethereum also experienced a more severe contraction in open interest, after which it stabilized and rebounded, gaining over 32% and briefly breaking above $2,800. Deleveraging is part of the market correction process; such phases are often accompanied by panic sentiment and may also occur at the tail end of a correction.

Over the past three weeks, the altcoin market has shown overall weakness, with Ethereum's price pulling back roughly 15% and its market cap shrinking by approximately $54 billion. In the derivatives market, ETH open interest on Binance fell by $1.3 billion over the past month, a decline of nearly 20%, dropping to $5.7 billion; total ETH open interest across the entire network fell to $11.5 billion.