Ethereum experienced significant deleveraging in Q4 2025, with open interest plummeting over 50% from a peak of $70 billion. This decline surpassed Bitcoin's 38% drop, suggesting Ethereum may have stronger recovery potential in early 2026. Despite market volatility, Ethereum's Total Value Locked (TVL) and Total Value Staked (TVS) metrics stabilized in November, indicating price resilience and setting the stage for a possible ETH/BTC breakout in Q1 2026.