Ethereum (ETH) has plunged sharply over the past 24 hours, falling more than 10% and falling below the crucial $3,000 mark for the first time in months.
The decline reflects the sell-off in global risk assets, from unprofitable tech stocks to high-flying AI companies, where investors are growing wary of aggressive spending and stretched valuations.
According to market data, Ethereum fell 5.5% earlier in the session, mainly due to a wave of fear-driven liquidation flows. ETH is currently trading around $2,701, marking a sharp weekly decline of over 15% and putting the asset more than 45% below its August all-time high.
ETH's price trends to the downside on the daily chart. Source: ETHUSD on Tradingview
Leveraging Wipeout: $150 Million in Liquidations Accelerates Fall
What sets Ethereum’s fall apart from the rest of the market is the amount of leverage that is unwound. Nearly $150 million in long liquidations were recorded in 24 hours, a massive spike that forced bullish positions to close automatically as prices fell.
Decreased market depth, increased volatility, and aggressive price swings. Analysts note that leveraged perpetual futures, widely used for both hedging and speculation, are a double-edged sword. When sentiment reverses, liquidations add to the downward pressure, pushing prices even lower.
Technically, Ethereum is now trading inside a falling wedge, with a lower boundary near $2,930 tested multiple times. Although this structure often precedes bullish breakouts, the window for sideways consolidation is rapidly narrowing. Key resistance levels at $3,000 and $3,200 need to be reclaimed before buyers gain momentum.
Whale behavior and on-chain metrics point to more weaknesses
Adding to concerns, Ethereum whales have slowed accumulation. Large addresses holding between 1 and 10 million ETH, previously net buyers, have suspended purchases, suggesting a loss of confidence in a near-term recovery.
On-chain metrics reinforce the bearish nuance. The MVRV Long/Short differential has fallen to a four-month low, indicating that long-term holders are losing profitability. If they start offloading to protect remaining gains, Ethereum’s decline could get even worse.
For now, ETH is facing critical downside levels at $2,650 and $2,606. A rebound above $3,000 would be the first sign of strength, but without renewed support from whales and an easing of liquidation pressures, the market could remain fragile.
As liquidity resets and volatility rises, traders are watching closely as this move may just be the beginning.
Cover image from ChatGPT, ETHUSD chart from Tradingview
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