After months of sustained downward pressure, Ethereum regained the $2,300 level as new buying activity began to push the market higher. The move marks a notable shift in near-term sentiment as traders increasingly point to growing bullish momentum across the broader cryptocurrency sector.
Over the past seven days, Bitcoin has risen about 8.6%, reinforcing the perception that the market is emerging from the correction phase that has dominated in recent months.
Ethereum, which often operates as a higher beta asset within the cryptocurrency ecosystem, responded more actively to the improving sentiment. During the same period, ETH surged about 13.9%, outperforming Bitcoin and signaling stronger speculative demand from traders.
Analysts say the uptrend is being supported by strong inflows into cryptocurrency-related exchange-traded funds, reflecting the continued institutional preference for digital assets. As liquidity begins to recover and risk tolerance improves, Ethereum’s ability to recover the $2,300 level is now being closely monitored as a potential pivot point that could determine whether the recovery can be extended further in the coming weeks.
Ethereum leverage recovers after historic liquidation reset.
CryptoQuant’s latest analysis highlights how the Ethereum derivatives market has undergone a significant structural reset following the dramatic liquidation event that occurred on October 10th. According to the report, the flash crash triggered one of the largest deleveraging events in cryptocurrency market history.
During the event, Binance’s Ethereum Estimated Leverage Ratio (ELR) plummeted from 0.56 to 0.41, reducing market leverage by 27%. The “10/10” event is now widely known as the largest 24-hour liquidation waterfall in cryptocurrency history, forcing over $19 billion worth of leveraged positions to be liquidated across the market.
As confidence returned following the reset, leverage levels were gradually rebuilt. The report noted that Ethereum’s ELR rose to around 0.69 in mid-March, meaning traders are once again increasing their use of leverage as sentiment improves.
The expected leverage ratio is calculated by dividing open interest by the amount of ETH held on the exchange. In practical terms, this measures how actively traders are using leverage relative to the collateral available in the system.
Higher ELR numbers generally indicate higher risk appetite and more speculative positioning, which can amplify both upward price momentum and market volatility.
As sentiment improves, Ethereum and Bitcoin will continue to act as high-beta risk assets, while more defensive investors may turn to tokenized gold products such as PAXG and XAUT.
Ethereum attempts a trend reversal after its February capitulation.
The Ethereum chart shows the asset trying to build bullish momentum after a prolonged correction phase that has dominated the market since late 2025. On a daily basis, ETH is currently trading around $2,310 after a strong rebound from the sharp sell-off that occurred in early February.
This decline pushed Ethereum towards the $1,800 region, where a clear surge in trading volume indicates a capitulation event and aggressive buyer absorption. After the low was formed, the price action gradually stabilized, with Ethereum building a higher base between $1,900 and $2,100 before starting its current upward movement.
Technically, ETH has now regained its short-term moving average, which served as dynamic resistance throughout the downtrend. These developments suggest that near-term momentum is swinging in buyers’ favor. However, the broader market structure remains cautious as prices continue to trade below the longer-term 100-day and 200-day moving averages.
The $2,300-$2,400 zone now represents an important resistance area. This level previously served as support before the February crash and is likely to attract significant sell-side liquidity.
If Ethereum consolidates above $2,300, it could open the door to continue towards $2,600 and $2,900, where the next major technical barrier and moving averages will converge.
Featured image from ChatGPT, chart from TradingView.com
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