Ethereum is showing signs of a leverage reset after high leverage long positions were largely wiped out, but the broader chart still points to a fragile recovery. While the long flush may reduce bullish overcrowding, ETH remains stuck in a weak technical structure where any rebound could face resistance before the trend turns. Ethereum Long Liquidations Surge as Market Turns Focus to Short Positions Ethereum’s high leverage long positions appear to have been largely wiped out, according to charts shared by market commentator CW on X. The post said almost all high leverage ETH longs had been liquidated, while attention was now shifting toward short positions. The charts, which appear to track liquidation pressure over time, show long exposure building and then getting cleared as price moved lower. Ethereum Liquidation Leverage Chart: Source: CoinAnk/CW/X The post also referenced an earlier update from March 21, when CW said ETH short positions remained similar to the previous day while long positions had increased slightly. At that point, the view was that most of those longs would eventually be liquidated. The newer post suggests that move has now largely played out. In market terms, long liquidation happens when traders using borrowed funds bet on higher prices, but the market moves against them and forces those positions to close. That process can accelerate downside because forced selling adds more pressure to an already weak move. Therefore, a wave of long liquidations often marks a sharp flush in sentiment as bullish traders get pushed out. Now the focus appears to be shifting to the other side of the market. When traders start talking about short liquidation, they usually mean that bearish positions could be vulnerable if price reverses upward and forces short sellers to buy back ETH. That kind of move can create a fast rebound, especially after a large long wipeout clears excess leverage from the market. For now, the charts point to a leverage reset in Ethereum rather than a confirmed trend reversal. The main takeaway is that bullish overexposure seems to have been reduced sharply. As a result, traders may now watch whether ETH stabilizes after the long flush or whether the market builds conditions for pressure on shorts next. Ethereum Looks Fragile as Chart Shows Rebound Attempt Within Broader Downtrend Ethereum is trying to recover from its recent drop, but the broader chart shared by More Crypto Online still shows a fragile structure. The daily ETH/USD chart marks a sharp selloff into the March low, followed by a small rebound that appears corrective rather than decisive. Price is hovering near the $2,155 area on the chart, while the analyst’s roadmap suggests Ethereum remains in an early recovery phase inside a wider bearish setup. Ethereum Daily Wave Structure Chart: Source: More Crypto Online The chart maps a possible ABC rebound from the recent bottom. In that structure, wave A pushed price off the low, wave B pulled it back, and wave C is now attempting to extend higher. However, the projected upside zone sits between about $2,617 and $3,342, which the chart treats as a resistance region rather than a confirmed breakout area. That means even if Ethereum moves higher from here, the rally could still face strong selling pressure before changing the broader trend. At the same time, the chart highlights a lower support area between roughly $1,821 and $1,600. That zone becomes important if the rebound fails. In other words, the current move looks less like a full trend reversal and more like a test of whether buyers can build enough strength to recover part of the earlier decline. Until Ethereum clears the marked resistance levels with conviction, the structure still favors caution. The wider pattern also shows that Ethereum remains well below the major highs seen earlier in the cycle. Previous downward waves on the chart were larger and more aggressive than the current bounce, which adds to the fragile outlook. As a result, the market appears to be at a technical crossroads, with a limited rebound still possible, but with downside risk remaining if support gives way again.
