Approximately $345 million in Ethereum long positions were liquidated on Binance during an October 8-9 sell-off, according to CryptoQuant. The firm says the flush reset leverage, but it describes conditions as neutral because stablecoin inflows and a rising Coinbase Premium are still missing.
Approximately $345 million in long positions were liquidated on Binance during an October 8-9 sell-off, according to a CryptoQuant analysis published October 16, 2026. CryptoQuant reads the flush as a leverage reset that improved market structure.
A truly bullish setup, however, still depends on two things the market does not yet have: USDT flowing back into exchanges and a rising Coinbase Premium.
Funding rates fall to near zero
ETH fell roughly 10% from its September highs, sliding from approximately $2,775 to approximately $2,500. Long liquidations on Binance increased by 47%, per the CryptoQuant data, and funding rates on the exchange dropped to near zero.
Binance's share of open interest rises
Binance's ETH futures open interest fell 4.7% over 30 days to around $6.1 billion. Even so, the exchange's share of ETH futures open interest climbed to around 49% after the liquidations, the highest level recorded since 2023.
Open interest measured in ETH rebounded to approximately 2.46 million ETH. That suggests traders are reopening positions after the flush rather than walking away from the market.
Stablecoin outflows keep conditions neutral
USDT reserves on Binance decreased by 2.3%, a net outflow of approximately $175 million. For that reason, CryptoQuant characterizes conditions as neutral rather than bullish. Binance ETH reserves also fell by 2.4%, which points to lower supply pressure.
The Coinbase Premium measures the price gap between ETH on Coinbase and on other exchanges. The research flags a rising premium as a potential indicator of renewed institutional interest.
CryptoQuant's checklist is short: whether USDT reserves on exchanges start climbing again, whether the Coinbase Premium turns higher, and whether funding rates stay subdued as ETH-denominated open interest continues to rebuild.
Source: Crypto Briefing
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