Binance Sees $50M Ethereum Short Liquidations as ETH Hits $2,700 Amid Bullish Exhaustion Signals
Ethereum’s recent surge past $2,700 triggered over $50 million in short liquidations on Binance, but underlying metrics hint at potential bullish exhaustion. Exchange reserves are rising while whale wallets show outflows—a classic divergence that often precedes price reversals. The decoupling from Bitcoin’s price action, once seen as a sign of ETH’s independent strength, now raises sustainability concerns.
Ethereum Surges Past $2,700 Amid Warning Signs of Faltering Momentum
Ethereum’s sharp rally above $2,700 triggered a cascade of short liquidations exceeding $50 million on Binance, yet underlying metrics suggest bullish exhaustion. Exchange reserves are climbing while whale wallets show notable outflows—a classic divergence that often precedes reversals.
The decoupling from Bitcoin’s price action, once celebrated as a sign of ETH’s independent strength, now raises sustainability concerns. Layer-2 networks and retail participation metrics are flashing warning signs, with ecosystem activity failing to match the price surge.
Market technicians note the MOVE was fueled by a short squeeze rather than organic demand. The $2,700 breakout lacked confirmation from derivatives markets, where open interest and funding rates remain subdued compared to previous bullish phases.
Bitcoin Short Positions Surge as Market Sentiment Turns Fearful
Market sentiment toward Bitcoin has shifted sharply, with over 53% of positions now betting against the cryptocurrency, according to CoinGlass data. The bearish tilt comes despite Bitcoin’s recent all-time high, signaling growing skepticism among traders.
Binance mirrors the trend, with shorts comprising 54.05% of open interest versus 45.95% for longs. The shift follows a high-profile reversal by crypto whale James Wynn, who exited a $1.25 billion Leveraged long position after Bitcoin dipped from $109,000 to $107,107.
Bitcoin Traders Eye Potential Pullback to $100K Amid Liquidity Build-Up
Bitcoin’s rally to a record $111,980 on Binance coincided with a surge in derivatives activity, as open interest hit $74 billion. The divergence between spot and futures trading volumes suggests speculative fervor may be outpacing organic demand.
Liquidation clusters below $100,000 now act as a gravitational pull for prices. Market mechanics dictate that price tends to migrate toward concentrated liquidity zones, creating technical vulnerability despite bullish sentiment.
BNB Chain Leads EVM Activity Surge as IOTA and Scroll Emerge as New Contenders
EVM-compatible chains are experiencing a renaissance of on-chain activity, with BNB Chain maintaining dominance in transaction volume while newcomers IOTA and Scroll demonstrate explosive growth. Nansen’s latest data reveals a dynamic landscape where established players and rising stars coexist.
IOTA’s 123% surge in active addresses signals robust adoption of its EVM implementation, outpacing competitors like Hyperliquid (+35%) and Sei Network (+22%). Meanwhile, BNB Chain’s 49% transaction growth reinforces its position as the workhorse of EVM ecosystems, processing nearly half again more activity than the previous week.
The emergence of Scroll’s zkEVM solution, with an 11% transaction increase, highlights growing developer interest in LAYER 2 scaling solutions. These metrics paint a picture of an expanding EVM universe where innovation and network effects drive measurable adoption.
Solana Faces Bearish Pressure Despite $3.5M Staking Move
Solana’s market dynamics reveal a tug-of-war between bullish conviction and bearish signals. Long liquidations surged to $6.1 million, flushing out overleveraged positions as SOL struggled to reclaim the $193 resistance level. Persistent spot outflows continue to cap upside momentum.
A newly created wallet withdrew 20,009 SOL ($3.53 million) from Binance, immediately staking 19,875 tokens. An additional 134 SOL transfer brought total staked holdings to $1.6 million. This substantial staking activity suggests long-term confidence, yet market reaction remains muted.
The divergence between heavy staking and price stagnation raises questions about potential bull traps. With liquidation risks looming, SOL’s next move hinges on whether spot demand can overcome the current outflow pressure.
BNB Price Eyes Comeback: Can It Regain Momentum and Rally Higher?
BNB shows signs of recovery after testing the $655 support level, with bullish momentum building above $665. The token broke through a key bearish trendline on its hourly chart, signaling potential for near-term gains if it maintains support at $660.
Market observers note parallels with bitcoin and Ethereum’s recent rebounds, as BNB cleared the 23.6% Fibonacci retracement level of its decline from $691. The $675 level and 100-hour moving average now serve as immediate resistance markers.
