Ethereum Leverage Reset Complete – Time For Market Re-Accumulation?
Overview
Ethereum is currently trading around $3,000, following a rebound in the broader crypto market over the past week. The altcoin has gained 7.22%, providing relief after a prolonged correction that lasted most of the previous two months. As the price stabilizes, insights from crypto analytics platform XWIN Research Japan shed light on Ethereum’s outlook, particularly in relation to futures market developments.
Recent Market Developments
In the fourth quarter of 2025, Ethereum experienced a significant price decline, crashing from $4,700 to as low as $2,900, marking a 38% drop. This price movement coincided with notable changes in the futures market, where Ethereum’s open interest across all exchanges fell from $21 billion to approximately $17 billion in late November. This decline was attributed to the closure of overleveraged long positions, prompting traders to adopt new positions with more moderate leverage sizes.
Funding rates during this period remained positive but saw a decrease to around 0.002, indicating a reduction in the previously dominant bullish sentiment observed in mid-2025. On-chain data analysis revealed that the Market Value to Realized Value (MVRV) stood at 1.27, while Binance data indicated a value of around 1.0. These figures suggest that Ethereum is currently in a neutral to fair value zone, which may indicate a phase of stability prior to the emergence of a major trend.
The recent recovery in the market was partly initiated after Ethereum retested the realized price of whale addresses, signaling that significant market players are increasing their holdings. XWIN Research Japan noted that Ethereum Treasury BitMine has raised its market holdings to 3.63 million ETH. Additionally, a client from BlackRock has acquired tens of millions of dollars’ worth of ETH, further reflecting the current market demand.
Despite this strong demand, Ethereum Spot ETF net outflows for November reached $1.42 billion, suggesting notable selling pressure in the market.
Current Market Status
As of the latest update, Ethereum is trading at $3,003, which represents a 0.22% loss in the past day. Although the altcoin has seen gains in the last week, it remains down by 22.34% over the past month, indicating that most short-term holders are facing losses. XWIN Research Japan highlights that while overleveraged positions have been cleared and market whales are increasing their holdings, Ethereum is still in a “bottom-building phase.” Investors are advised to expect a “choppy, sell-on-rally” price action in the short term, but analysts foresee a potential major trend reversal as the current price area becomes increasingly attractive for accumulation.
Impact on the crypto market
- Ethereum’s recent price stabilization may indicate a potential shift in market sentiment.
- The decline in open interest suggests that overleveraged positions have been cleared, which could lead to healthier trading conditions.
- Increased holdings by large market players, including Ethereum Treasury BitMine and a BlackRock client, may reinforce market demand.
- Despite significant selling pressure indicated by ETF outflows, the neutral to fair value zone suggests opportunities for investors.
- The current “bottom-building phase” may set the stage for future price recovery and accumulation strategies.
Updated: 11/30/2025, 9:22:15 AM
