Ether Shed $54 Billion in Nearly Three Weeks; Analyst Says Correction May Be Ending

Ether (ETH) lost about $54 billion in market value in nearly three weeks as a broad altcoin pullback coincided with a sharp reduction in derivatives positions, while analyst Darkfost said the correction may be nearing its end.

Ether's price fell about 15% during the period. Binance's ETH open interest declined by $1.3 billion over the past month to $5.7 billion, a drop of nearly 20%. Total ETH open interest across the market fell to $11.5 billion.

Darkfost attributed the deleveraging to falling prices, cascading liquidations and traders closing positions to reduce risk. The analyst pointed to July, when open interest contracted more sharply before the market stabilized. ETH then rose more than 32%, briefly moving above $2,800.

Darkfost said deleveraging is part of a market adjustment. Such phases are often accompanied by panic and may occur near the end of a correction.