The Open Interest (OI), which measures the total number of open positions from a futures contract, shows that although the decline has brought the price closer to $2,800, there has not been a significant decline yet. However, the increasing downward trend indicates that a more serious decline may be on the table and potentially much larger losses may be involved.

Even if Ethereum's OI consolidates, the persistent bearish outlook threatens to push the price below $2,700. If this scenario were to occur, it could cause OI to drop below 2 million coins and trigger mass liquidations as derivative contracts are closed. The $3.5 billion position opened in anticipation of Spot Ethereum ETF approval was recently closed and withdrawn from the market, causing a significant OI drop. This paves the way for further declines if ETH cannot find support at the critical support level of $2,800.