Trump Speech Triggers $1B ETH Liquidation, Binance Supply Hits 2024 Low

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$1 Billion in <a href="https://bbg-news.com/eth-usd/">ETH</a> Liquidated in 1 Hour While <a href="https://jpygbp.com/bnb-usd/">Binance</a> Supply Hits Its Lowest Level Since 2024

Key Takeaways

  • ETH dropped to $2,038 at 10:59 UTC April 2, breaking below 50 SMA at $2,098 on heavy volume.
  • $1 billion in ETH sell volume hit derivatives in one hour post-Trump speech, $968M on Binance alone.
  • Open Interest collapsed alongside price – forced liquidations, not organic selling.
  • Binance ETH reserves fell to 3.3M ETH – lowest since February 2024.
  • Glamsterdam upgrade targeting June 2026 .

Ethereum briefly reached a high of $2,160 on April 1st, but the increase didn’t last a full day. This wasn’t a sign of weakness, though; trading volume was healthy, the RSI indicator had bounced back, and the price charts were starting to show a potential upward trend for the first time in weeks. This gave traders, who had been hesitant after five weeks of price drops caused by the war, a promising opportunity. However, that opportunity vanished quickly, not due to market forces, but because of a shift in focus from the president.

Trump’s speech indicated no plans to reduce tensions with Iran anytime soon. He vowed a strong response and didn’t suggest any way to reopen the vital shipping lane of the Strait of Hormuz.

Around 10:59 UTC on April 2nd, Ether (ETH) was trading at $2,038. This was $60 below its 50-day Simple Moving Average of $2,098. The Relative Strength Index (RSI) was at 32.50 and continuing to decline. Looking at the hourly chart, the most recent candle was notably large, red, and showed a clear downward trend.

One Hour, One Billion Dollars

The speed of the move is what separates this from ordinary selling.

Immediately after Donald Trump spoke, the cryptocurrency market saw over $1 billion worth of Ethereum (ETH) sold in derivatives, as reported by CryptoQuant. Binance, currently the leading exchange for these types of trades, processed $968 million of that amount. At the same time, the stock market also reacted, with the S&P 500 losing $500 billion in value just minutes after the speech.

In the last 24 hours, crypto market volatility led to the liquidation of over 140,000 traders, totaling $422 million. Of that amount, $249 million was from traders who bet prices would rise (long positions), according to data from CoinMarketCap.

This was not a market making a decision. This was a market getting a decision made for it.

What the Derivatives Market Shows

When both the price and the number of open contracts decrease simultaneously, it usually means that positions are being liquidated due to margin calls, rather than traders intentionally closing them. This is what we observed in this situation.

Data from CryptoQuant shows a clear pattern on Binance: both the price and open interest (OI) dropped sharply immediately after the speech, suggesting that the sell-off was likely caused by forced liquidations – meaning traders were quickly closing positions to limit losses – rather than a deliberate shift in strategy. The gains made from the price increase between $1,980 and $2,160 were wiped out within the hour the speech was released.

Open interest has risen a little since the recent price drop, but the increase isn’t strong enough to suggest a solid recovery. The price is trying to find stability, but there’s a lack of strong buying or selling. Futures traders are hesitant to make moves. Ethereum has been trading within a narrow range for a while now, causing positions to be closed out quickly before they can gain traction. Until a clear trend emerges, open interest will likely remain low and the price will continue to be unstable.

As a crypto investor, I’m looking at the current Open Interest (OI) around $4.8 billion, and comparing it to the peak of about $13 billion we saw towards the end of 2025. It’s not that the OI is *low* that’s important, it’s that at these levels, the market has more space to grow. In past cycles, lower OI meant the price could increase without being held back by too many leveraged positions. So, I don’t see this as a ‘buy signal’ – it just means we’re starting from a healthier, less crowded position.

What the Exchange Reserves Show

While price movements are visible, the underlying market is changing in ways that aren’t immediately obvious from looking at a simple chart.

Binance now holds 3.3 million Ethereum, a decrease from previous lows of 3.49 million in August 2024 and 3.53 million in February 2024, according to data from CryptoQuant. Bitcoin holdings on Binance have also fallen, dropping from around 670,000 BTC in early February to 636,000 BTC in early April.

When people take their cryptocurrency off of exchanges and store it themselves, it reduces the amount available for immediate sale. This can lessen downward pressure on the price, even if the overall news and market feeling are still negative.

Stablecoin holdings have been increasing recently. On Binance, reserves of USDT grew from $35 billion on March 12th to $38 billion by April 2nd, while USDC reserves rose from $4.6 billion in February to $6.6 billion. This means there’s more dollar-based money currently held on the exchange than there has been in the last six weeks, and it’s ready to be used for buying cryptocurrencies when the time is right.

There’s not much Ethereum available for sale, but there’s plenty of money ready to buy it. While this alone won’t cause prices to immediately go up, it does suggest a potential recovery is building, and the current price doesn’t fully reflect that.

Two Outcomes From Here

Continued selling pressure suggests the price of ETH could fall further. A break below $2,000 would likely lead to a test of $1,980, and potentially down to $1,900 where stronger support exists. While the RSI at 32.50 doesn’t yet indicate a major sell-off, it’s approaching levels that have historically signaled one. Furthermore, analysis from CryptoQuant suggests that ETH tends to break downwards after periods of tight trading, making a price drop more probable than a rise.

Despite current challenges, the groundwork for a strong rebound in the market seems to be forming. Risky positions have already been cleared out, and there are positive signals like a low amount of Ether on the Binance exchange and increasing stablecoin reserves. Looking ahead, a major Ethereum upgrade called Glamsterdam, planned for June 2026, could act as a significant boost. Historically, Ether’s price has risen considerably before major upgrades – about 35% before the Merge, 40% before Shanghai, and 20% before Dencun. If this pattern continues, we could see a buying opportunity now, even though market conditions currently feel unfavorable.

The market is currently caught between conflicting signals: price action suggests a decline, while underlying fundamentals hint at a potential recovery. Which trend takes hold – falling prices or a rebound – will likely depend on how the situation in the Middle East unfolds in the coming days. Essentially, the market’s direction hinges on whether tensions in the region escalate or de-escalate.

This article is for informational purposes only and shouldn’t be considered financial, investment, or trading advice. Coindoo.com doesn’t support or suggest any particular investment or cryptocurrency. Always do your own research and talk to a qualified financial advisor before investing.

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2026-04-02 14:24