The post Ethereum Price Rebounds 6% as Leverage Resets—Can ETH Break $2,200 Resistance? appeared on BitcoinEthereumNews.com.

The post Ethereum Price Rebounds 6% as Leverage Resets—Can ETH Break $2,200 Resistance? appeared first on Coinpedia Fintech News Ethereum price rebounded over 6% in the past 24 hours, climbing back toward the $2,000 level after a sharp liquidation-driven decline earlier this month. However, despite the relief move, ETH remains below a critical resistance zone near $2,200 that continues to cap upside attempts. The recent rebound comes as derivative leverage resets and funding rates normalize,  suggesting the worst of the forced positioning flush may be over. The key question now is whether the ETH price is forming a base—or simply printing another lower high within a broader downtrend. Open Interest Collapse Signals Deleveraging Data across exchanges shows Ethereum’s open interest has fallen sharply from previous highs, representing a significant leverage reset. While falling OI reduces cascading liquidation risk, it also signals reduced speculative aggression. A sustained breakout would require renewed positioning while the levels are attempting to rise. Currently, the OI sits around $12 billion; a rise above $13 billion is required to flip the trend, while a surge above $17.5 could validate a rise in confidence among the traders.  Funding Rates Normalize After Negative Spike Funding rates recently turned deeply negative during the Ethereum price drop, reflecting aggressive short positioning. They have now flipped mildly positive, suggesting extreme bearish sentiment has cooled, short squeeze pressure has diminished, and positioning is closer to neutral. This environment often supports short-term stabilization rather than immediate trend reversal. When the market is bullish, the funding rate is typically positive and increases over time, meaning long traders pay the funding fee to the short traders.  On-Chain Activity Elevated but Cooling Active addresses surged during the recent volatility phase, signaling heightened network engagement. However, activity has begun to cool from its peak but maintains a…

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Filed under: News - @ February 25, 2026 9:22 pm