Ethereum price crashes often follow $ETH open interest peaks — Cointelegraph Analytics

📈 Ether's Resistance Struggle
Ether gained 8.8% between Oct. 14-15, but the $2,650 resistance proved difficult. Traders are concerned as open interest in ETH futures hit an all-time high on Oct. 16, which could signal a price correction.

⚠️ Potential Correction Ahead?
The surge in leveraged ETH positions often precedes price drops. On Aug. 2, a similar situation saw ETH crash 31.7%. The current market structure mirrors past events, raising concerns about potential forced liquidations and cascading price declines.

💥 Impact of Leverage
While high open interest isn’t always bearish, excessive leverage can lead to sudden price moves. Forced liquidations in futures markets often impact spot prices, accelerating price shifts.

📊 Market Trends to Watch
A 20-25% drop in ETH to $1,960 is possible if the broader market remains neutral. However, if Bitcoin breaks $70,000, increased leverage in ETH could fuel bullish momentum.