• Ethereum plunged nearly 15% from its weekly high of $2,878 after a sharp bull trap.
• With support under pressure, smart money may be eyeing this reset while the broader market de-levers.

Leverage cuts both ways in crypto, and Ethereum’s [ETH] past 72 hours are a textbook case. With macro FUD easing and risk appetite returning, Futures traders started front-running a potential breakout above $3,000.

But then came the snapback. The move turned into a classic bull trap, resetting overextended positions. At press time, ETH is down nearly 15% from its weekly high of $2,878, putting bulls firmly on the defensive.

Now, the focus shifts to support. According to AMBCrypto, holding is now critical to prevent a deeper wipeout. But will smart money see opportunity where others see risk? 

Ethereum leads the bleed as leverage unwinds

No doubt about it, the market is deep into deleveraging mode. But it’s Ethereum that’s leading the unwind, and for good reason.

On the 11th of June, ETH’s Open Interest peaked at an all-time high of $41.45 billion, with spot prices hovering around $2,815.

That means the leverage-driven positioning even surpassed levels seen during previous bull market tops.

The signs of overheating were clear. According to CryptoQuant, Binance’s ETH OI alone surged 38% in just five days, reaching $6.9 billion on the 10th of June, the second-highest level in 2025 so far.

Source: CryptoQuant

On paper, the aggressive positioning made strategic sense. The U.S.-China trade deal boosted risk appetite, dovish rate bets gained traction, and ‘cooler-than-expected’ CPI data helped fuel the rally.

Bitcoin [BTC] responded with strength, storming back above $110k. However, in Ethereum’s case, it was speculative capital that piled in fast and heavy. And so, the snapback caught many offside. 

Three days later, ETH’s OI has dropped nearly 14% to $35.51 billion, as overexposed traders either cut losses manually or got wiped out by liquidation.

The result? Ethereum absorbed nearly three times the impact Bitcoin did.

Eyes on the dip: Will smart money anchor the floor?

Typically, when the market panics after a leverage unwind, whales start buying the dip. It’s the classic “buy the fear” setup. And that’s exactly what appears to be happening now.

According to Lookonchain, while retail dumps ETH in fear, one whale is doubling down aggressively. The address has scooped up 48,825 ETH, worth $127 million, at an average price of $2,605.

Yet the pressure hasn’t let up. With ETH dropping 4.77% intraday, price not only lost the $2.6k support, it wicked as low as $2,440, highlighting just how aggressively liquidity is being drained from the derivatives market.

Source: TradingView (ETH/USDT)

Consequently, the next 48 hours could be decisive for Ethereum.

Given the ongoing unwind, retail traders are either sidelined or adding to sell-side liquidity. That leaves the $2,400 support hanging by a thread.

If it cracks without defense, the next leg down won’t be driven by fear. Instead, it’ll be fueled by forced exits.