Ethereum (ETH) has plunged sharply in the past 24 hours, falling more than 10% and slipping below the crucial $3,000 mark for the first time in months.
The drop mirrors the wider sell-off hammering global risk assets, from unprofitable tech stocks to high-flying AI companies, where investors are increasingly uneasy about aggressive spending and stretched valuations.
According to market data, Ethereum tumbled as much as 5.5% earlier in the session, driven primarily by a wave of fear-driven liquidation flows. ETH currently trades around $2,701, marking a steep weekly decline of over 15% and placing the asset more than 45% below its August all-time high.
What separates Ethereum’s slide from the rest of the market is the sheer amount of leverage being unwound. Nearly $150 million in long liquidations were recorded within 24 hours, a massive spike that forced bullish positions to close automatically as prices dropped.
Thinning 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 flips, liquidations compound downward pressure, pushing prices even lower.
Adding to the worries, Ethereum whales have slowed accumulation. Large addresses holding between 1 million and 10 million ETH, previously net buyers, have paused their purchases, suggesting fading confidence in a near-term recovery.
For now, ETH faces critical downside levels at $2,650 and $2,606. A rebound back above $3,000 would be the first sign of strength, but without renewed whale support and an easing of liquidation pressures, the market may remain fragile.
As liquidity resets and volatility spikes, traders are watching closely, because this move may only be the beginning.
Cover image from ChatGPT, ETHUSD chart from Tradingview
