Ethereum Slips Below $2,500 as Traders Remain Cautious About Rally

Ethereum ($ETH) has slipped below $2,500 after a modest buying activity in the spot market failed to counter subdued demand across derivatives.

The recent price action may be setting up for the next ETH surge, but traders remain cautious about the sustainability of the rally.

Leverage has yet to return to Ethereum's derivatives market following the short squeeze that pushed $ETH toward $2,500 in late August.

Open interest, which represents the value of outstanding derivatives contracts, has fallen by approximately 1 million $ETH since July.