- Ethereum’s Coinbase Premium shifted positive, but Binance selling pressure outweighed demand, leading to continued short-term weakness in trading performance.
- Long liquidations surged to the second-highest level this year, showing bullish traders were heavily exposed as markets reversed against their positions.
- Coinglass data reveals $3 billion in shorts could be liquidated above $4,200, with $11.6 billion at risk near all-time highs.
Ethereum Coinbase Premium has recently turned positive, yet the asset continues to trade under pressure, reflecting broader selling pressure and heightened liquidations.
Positive Premium Fails to Support Price
Ethereum’s Coinbase Premium, which compares the price between Coinbase and Binance, recently shifted into positive territory. A positive reading often suggests stronger buying pressure on Coinbase. Despite this, Ethereum’s price continued to slip, showing that Binance selling outweighed Coinbase demand.
The imbalance reveals that localized exchange signals cannot override stronger flows in the broader market. The ongoing decline suggests Binance activity has exerted more influence on Ethereum’s short-term performance. Market participants are therefore observing these divergences closely.
Such differences between exchange flows demonstrate the complexity of Ethereum’s trading structure. While Coinbase buyers have stepped in, the stronger weight of Binance sellers has capped upward momentum and maintained downside pressure.
Rising Long Liquidations Add Pressure
Another factor shaping Ethereum’s movement has been the surge in long liquidations. Current data shows the second-highest level of long liquidations in the past year. Many traders had positioned themselves with bullish expectations, but sudden reversals forced heavy losses.
Markets often move against crowded positions. Here, aggressive bullish sentiment was met with aggressive selling, and hence there were large-scale liquidations. Such events usually confirm short-term weakness and volatility in cryptocurrency markets.
The liquidation trend also indicates the risks of leveraged short positions in extremely volatile markets. With most long holders already being forced out, even short-term price pressure remains in place despite Ethereum being close to significant technical levels.
Short Positions Face Potential Liquidation Risk
Despite the weakness, Ethereum recorded slight daily gains, trading at $3,985 on September 28, 2025, with a 0.47% increase. Reports also indicated Binance deposited over 4,000 ETH worth $16 million, raising attention on exchange flows and liquidity.
Coinglass data shows $3 billion in short positions remain exposed across exchanges such as Binance, OKX, and Bybit. If Ethereum rises above $4,200, these short positions could face large-scale liquidations. At the all-time high of $4,878, $11.6 billion in shorts could be affected.
Market focus now rests on the $4,060 resistance level. After $4.3 billion in crypto liquidations last week, traders view this level as critical for Ethereum’s short-term direction, balancing between weak momentum and potential breakout conditions.
