Ethereum Drops to $2,090 Amid Mass Liquidations and Declining Open Interest

Ethereum (ETH) faced massive liquidations in the derivatives market following a sharp decline in the cryptocurrency's value on November 8–9, 2026. During this period, the price of ETH dropped from approximately $2,236 to $2,090, losing about 7.9% from its initial level. The most significant pressure was on traders who had opened leveraged positions betting on a price increase.

According to the analytical service Liqwall, on November 8, the volume of ETH liquidations reached $304 million, and on November 9, it amounted to another $64.7 million. The combined result over two days approached $369 million. Other market reviews provide higher estimates due to differences in the exchanges and time intervals considered.

Most liquidations were in long positions

The largest wave of forced position closures occurred on November 8. Of the $304 million in liquidations, about $283 million, or 93%, were in long positions by traders expecting an increase in ETH's price. Another $21 million were liquidations of short positions.

The largest volumes of closures for the day were recorded by Liqwall on Binance, Hyperliquid, and Bybit. Approximately $119 million were liquidated on Binance, $89.9 million on Hyperliquid, and $45.2 million on Bybit. The most intense hour was from 21:00 to 22:00 UTC on November 8, when the volume of liquidations reached approximately $273 million.

Forced closures occur when the collateral for a leveraged position becomes insufficient to maintain the trade. When the price falls, exchanges close long positions, and the associated operations can amplify market volatility. However, liquidations are not necessarily the initial cause of an asset's price decline.

Ethereum's open interest on Binance fell below the average level

Amid the sell-off, the open interest in ETH derivatives on Binance significantly decreased. According to analyst Arab Chain, published on the CryptoQuant platform on November 10, the figure dropped to $5.236 billion compared to the average value of $5.850 billion over the previous 30 days. The difference was approximately $614 million.

Meanwhile, the 30-day Z-Score of open interest fell to −2.87. This statistical measure indicates that the current volume of open contracts is about 2.87 standard deviations below the average value for the period considered. Such a deviation indicates an unusually strong reduction in positions relative to recent dynamics.

According to Arab Chain, the simultaneous decline in Ethereum's price and open interest may indicate the closure of previously opened positions. Some traders may have lost positions due to liquidations, while others exited trades voluntarily. However, a reduction in OI itself does not confirm that market participants are massively opening new short positions.

It is important to note that the $5.236 billion figure pertains only to Ethereum contracts on Binance. It does not reflect the total open interest across all cryptocurrency exchanges, so it cannot be used to assess the full volume of the ETH derivatives market.

Price levels analysts are monitoring

After falling to $2,060, Ethereum partially recovered and was trading near $2,100 on November 10. Amid increased volatility, market participants focused on the psychological mark of $2,000, which could influence the placement of trade orders and traders' expectations.

The initial technical analysis also highlighted the $1,840–1,950 zone, where ETH consolidated in July and August. From a chart analysis perspective, this range is considered a potential demand area, but reaching it does not guarantee the emergence of buyers or a halt in the decline.

Additional indicators include On-Balance Volume (OBV) and MACD. According to the daily chart analysis, OBV has changed relatively little over the past ten days, although it has shown a gradual decline since early October. MACD also indicated the persistence of negative price momentum.

However, technical indicators do not allow for a definitive determination of Ethereum's future dynamics. To assess the market condition, it is necessary to consider not only price levels but also changes in open interest, liquidation volumes, and actual trading activity.