ETH short-term slight decline of 0.20%: Long positions liquidated in a high leverage environment trigger a short-term correction

From 00:00 to 04:00 (UTC) on May 4, 2026, ETH prices experienced a slight pullback, with a return of -0.20%, trading within a range of 2315.08 to 2322.59 USDT, with an amplitude of 0.32%. Market volatility was limited during this period, but there were clear signs of deleveraging in the on-chain derivatives market, attracting some attention.

The main driver of this movement was the passive liquidation of long positions in a high leverage environment in the derivatives market. Data shows that ETH futures open interest approached $60 billion, reaching a new high, with market leverage remaining high. In the past 24 hours, over $127 million of long positions were liquidated, far exceeding the $70 million liquidated in BTC, while the long-short ratio decreased from the 7-day average of 7.0 to 1.74x, indicating a contraction of long positions. Slight price fluctuations in a high leverage environment can trigger chain reactions of leveraged liquidations, creating localized downward pressure.

Additionally, on-chain activity remained high but showed no abnormal expansion. Total Gas consumption stayed steady, with a balanced distribution of transaction types; DeFi, stablecoins, and other transaction types did not exhibit extreme structural changes. ETF capital inflows stabilized, stablecoin supply grew slightly, and total DeFi lock-up volume remained at $58.3 billion. Order book depth was healthy (52% buy / 48% sell), market liquidity was ample, and there was no sign of liquidity drying up or large capital outflows. Regarding external events, there have been no recent regulatory policy changes or systemic security incidents affecting ETH, with limited impact. Overall, multiple factors did not resonate significantly, and price volatility was constrained by localized deleveraging in the derivatives market.

The current market remains in a high leverage environment, and attention should be paid to changes in open interest and on-chain capital flows. If large-scale unilateral capital outflows or accelerated deleveraging in the derivatives market occur later, there is a need to be alert to further price volatility risks.