Eth's $349M Long Squeeze: $1,550 Support Gets a Re-Test Nobody RSVP'd To

Crypto derivatives saw $1.42 billion in liquidations over the past 24 hours, with Ethereum accounting for $349.17 million of that total, including $274.29 million in long positions wiped out, according to market data. The leading altcoin was testing the $1,550 price level it first touched in the first week of June, while Bitcoin [BTC] was trading below the $60k support level at the time of writing. Analysts attributed the move to a liquidation cascade across perpetual futures markets.

Onchain indicators from Glassnode suggested the selling pressure could intensify. The 7-day moving average of Ethereum's net transfer to/from exchanges metric registered a positive shift after spending three weeks in negative territory, a phase that had previously signaled coins flowing off exchanges. A tilt back toward net inflows to exchanges would increase the supply of ETH available for sale, adding weight to an already strained price structure.

A second Glassnode metric, new address momentum, tracks network adoption through the monthly and yearly averages of new addresses. Since late April, the monthly average has fallen below the yearly average, a configuration associated with contracting onchain activity and weakening adoption. Such patterns have historically coincided with deteriorating market sentiment and declining price trends.

In the derivatives market, the 7-day moving average of the taker buy-sell ratio has stayed in positive territory since June 10, indicating that speculative buyers have continued to step in. Yet the bounce toward $1.8k recorded last week reversed quickly, and the data shows those same buyers can also set up the conditions for squeezes like the most recent one.

Writing on CryptoQuant Insights, analyst CryptoOnchain applied a systematic regime model combining Bitcoin's derivatives flows with centralized exchange stablecoin flows and estimated a 45% probability of a bullish shift for ETH. The analyst identified a decisive turn toward stablecoin inflows to Binance as a useful signal of returning investor risk appetite, and concluded that until that shift occurs, patience is likely to be a safer stance than bullish or bearish conviction.