Ethereum's Leverage Purge Leaves It Lean and Hungry Like a Bear After a Honey Raid

Ethereum’s overleveraged longs have been mostly flushed out, according to market watcher CW on X. The liquidation chart shows bullish exposure stacking up like a degen's pile of unsold NFTs, only to get wiped clean as the price slipped, putting the short sellers squarely in the spotlight now.

Long liquidations occur when those borrowed bets on higher prices get squeezed—adding forced-sell pressure to a down move. With most of that bullish over-exposure now vaporized, the market has essentially undergone a leverage detox. It's a reset, not a full-blown trend reversal; think of it as a cold shower for overconfident traders.

The new focus is squarely on the shorts. If ETH decides to rally, those short sellers could be forced to cover their positions, potentially sparking a quick bounce. This would be the market's revenge arc, coming right after the long wipe-out cleared the excess leverage from the system.

On the technical side, More Crypto Online’s daily ETH/USD chart paints a picture that's more fragile than a meme coin's fundamentals. After a sharp sell-off down to the March low, the price has nudged up to around $2,155, forming what looks like an ABC corrective wave. Wave A lifted the price, wave B pulled it back (typical crypto indecision), and wave C is now trying to push higher, like a trader hoping their one good call will offset all the bad ones.

The upside target sits between $2,617 and $3,342, but the chart treats that band as a resistance zone, not a breakout party. Even a move into that range could still face strong selling pressure—think of it as trying to climb a hill while people are throwing rocks at you—before any real trend change gets confirmed.

Below, support is mapped between $1,821 and $1,600. A failure to hold the current rebound would likely see the price test that floor, which is about as welcoming as a bear trap for anyone still holding bags.

In short, ETH is testing whether buyers can muster enough strength to climb out of its early-recovery phase. Until it decisively clears that resistance corridor, caution remains the only sensible play, and downside risk persists if support crumbles—a classic crypto cliffhanger.