Ethereum dropped below $2,600, triggering a sharp divergence in trader positioning. Tom Lee's BitMine reportedly bought another 12,500 ETH worth $33.65 million during the decline, while trader 0xcbab was fully liquidated on a $9.85 million ETH long position within three minutes.

ETF outflows accompanied the price drop

US spot Ethereum ETFs recorded a daily net outflow of $201.89 million on October 6, according to SoSoValue data, their worst single-day figure in recent sessions. Cumulative net inflows since launch stood at $13.55 billion, with total net assets at $17.36 billion, representing 5.27% of Ethereum's total market cap.

BlackRock's ETHA accounted for nearly the entire outflow, shedding $201.89 million and 75.11K ETH in a single day. That concentration matters because ETHA is by far the largest Ethereum ETF by net assets, holding $13.04 billion compared to the next closest fund, Grayscale's ETH at $2.50 billion. A single-day outflow this size from the dominant fund can move the market independently of broader sentiment shifts across smaller funds, several of which, including Grayscale's ETHE, Fidelity's FETH, and Bitwise's ETHW, recorded zero net flow the same day.

The liquidation data shows where leveraged longs got hit hardest

CoinGlass data showed 101,393 traders liquidated over 24 hours, with total liquidations reaching $544.14 million. Long positions accounted for $481.97 million of that total, against just $62.17 million in short liquidations, a ratio of roughly 7.75 to 1. The largest single liquidation order occurred on Binance, an ETHUSDC position worth $26.64 million.

Ethereum led all assets in liquidation volume at $175.15 million, ahead of Bitcoin at $141.70 million. That heavy long-side skew confirms the price drop caught leveraged bulls off guard rather than reflecting a broad deleveraging event across both sides of the market. The pattern mirrors what happened during Bitcoin's September breakout above $84,000, except inverted: where that earlier move punished short sellers caught betting against a rally, this ETH decline punished long traders caught betting on continued strength, illustrating how quickly leveraged positioning can flip from one side of the trade to the other within the same market cycle.

Why Tom Lee's BitMine keeps buying through the drawdown

BitMine's reported 12,500 ETH purchase continues a pattern the fund has shown throughout 2026 of adding to its position during price weakness rather than reducing exposure. Tom Lee has built BitMine into one of the largest corporate holders of Ethereum, and the fund's willingness to buy at depressed prices reflects a long-term accumulation thesis rather than a short-term trading strategy tied to daily price movement.

0xcbab's $9.85 million liquidation shows the opposite side of that same price action.

A fully liquidated long position of that size, wiped out within three minutes, indicates the trader was running substantial leverage against a position that moved against them faster than their margin could absorb. Perpetual futures platforms automatically close out positions once losses breach the maintenance margin threshold, and a three-minute liquidation window suggests either an extremely high leverage ratio or a sudden, sharp price move that outpaced the trader's ability to add margin in time.

The combination of institutional accumulation from BitMine and retail-scale forced liquidations in the same session captures how differently positioned market participants experience the same price move. One treats the drop as an opportunity to add to a long-term position at a discount. The other faces the mechanical consequence of leverage meeting volatility.

Solana Launches Open-Source DvP Settlement for Banks | HODL FM NEWS
Solana Foundation launched Solana DvP, an open-source atomic settlement standard built with JPMorgan input, cutting trade settlement from days to seconds.
hodl-post-imageHODL FM News: The Wildest Ride in the Crypto MarketRoman Zaika
hodl-post-image

Disclaimer: All materials on this site are for informational purposes only. None of the material should be interpreted as investment advice. Cryptocurrency investments involve significant risk of loss. Please note that, despite the nature of much of the material created and hosted on this website, HODL FM operates as a media and informational platform, not a provider of financial advisory services. The opinions of authors and other contributors are their own and should not be taken as financial advice. If you require advice, HODL FM strongly recommends contacting a qualified industry professional.