Ethereum Rally Faces Key Test at $2800 With Low Leverage
Ethereum (ETH) is showing signs of recovery, narrowing its year-to-date loss to about 7%, the smallest weekly decline since January 2026. Analyst Ted Pillows highlights the $2,800 mark as a critical level, suggesting that a weekly close above it could signal further upside for the cryptocurrency.
The current rally stands out due to its lack of heavy derivatives leverage, contrasting with previous peaks. Futures open interest remains at approximately $14 billion, significantly lower than the $33 billion observed in September 2025. This indicates that the recent price uptick is driven more by spot market demand rather than leveraged trading.
U.S. spot Ethereum ETFs have seen nearly $93 million in net outflows in October, following a period of inflows in late September. Despite this, retail sentiment on Stocktwits has improved to ‘neutral’ from the ‘bearish’ zone, with ‘normal’ chatter levels over the past day.
One notable development is the sale of 13,330 ETH, worth around $37 million, by an Ethereum ICO participant after six months of holding. The wallet originally bought 170,000 ETH through the ICO at approximately $0.31 each, making the initial investment worth $52,700, which would now be valued at $461 million at current prices.