ETH drops 0.66% in 15 minutes: short-term long profit-taking after 14% rebound resonates with high derivative position adjustments

During the period from 22:30 to 22:45 UTC on July 5, 2026, ETH rapidly retraced 0.66% within 15 minutes, with the price falling from 1807.84 USDT to 1788.26 USDT, resulting in an amplitude of 1.09%. This period is at the transition between the New York session tail and the Asian session, a period of relatively low liquidity. After the rebound, a technical pullback occurred, and market volatility intensified.

The main driver of this anomaly was short-term profit-taking. ETH rebounded from approximately $1,570 on July 1 to about $1,790 on July 5, a cumulative gain of about 14%. During the Asian early morning session corresponding to 22:30 UTC, some short-term long positions chose to close for profit, triggering technical selling pressure. Combined with stop-loss selling caused by a failed test of the psychological $1,800 level, the price declined rapidly.

Secondly, adjustments to high-leverage positions in the derivatives market amplified the volatility. ETH futures open interest is at a historical high of approximately 16 million ETH, with a total value exceeding $30 billion. After the price rebound, the closing of leveraged long positions and the entry of new shorts formed a handover, concentrated during a period of low liquidity, amplifying short-term volatility. Persistent weakness in on-chain demand also provided background support — the number of active addresses has dropped 46% from the beginning of the year, network usage intensity has shrunk, and the weak medium-to-long-term fundamentals mean any rebound faces selling pressure.

In addition, spot ETFs continue to see net outflows (net outflow of approximately $401 million in May 2026), reflecting cooling institutional sentiment. Insufficient buying support exacerbated the downward price pressure.

Volatility risks persist, and attention should be paid to the key support level of $1,500 and resistance level of $1,753. A break below $1,500 would expose downside space to $1,200. On-chain fund flows, ETF flow changes, and macro policy developments will be subsequent key observation indicators. Users should be cautious of the risk of leveraged position unwinding.