Ethereum (ETH) has plummeted over the past 24 hours, dropping more than 10% and falling below the crucial $3,000 level for the first time in months.
The decline reflects a broader selloff hitting global risk assets, from unprofitable tech stocks to fast-growing AI companies, as investors grow increasingly wary of aggressive spending and inflated valuations.
According to market data, Ethereum fell by as much as 5.5% in early trading, mainly due to fear-based liquidation flows. ETH is currently trading around $2,701, marking a significant weekly decline of more than 15% and leaving the asset more than 45% below its all-time high in August.
ETH's price trends to the downside on the daily chart. Source: ETHUSD on Tradingview
Leveraged wipeout: $150 million liquidation accelerates collapse
What sets Ethereum’s decline apart from other markets is the massive amount of leverage being unwound. Close to $150 million in long-term liquidations were recorded within 24 hours, resulting in a massive rally that caused bullish positions to automatically exit as the price fell.
The market becomes thinner, volatility increases, and prices fluctuate rapidly. Analysts say leveraged perpetual futures, widely used for both hedging and speculation, are a double-edged sword. When sentiment reverses, liquidations increase downward pressure and push prices further down.
Technically, Ethereum is currently trading inside a descending wedge, with the floor around $2,930 being repeatedly tested. This structure often precedes a bullish breakout, but the window for sideways consolidation is quickly narrowing. The key resistance levels at $3,000 and $3,200 need to be regained before buyers gain momentum.
Whale behavior and on-chain indicators point to further weaknesses
The slow accumulation of Ethereum whales is also adding to concerns. Large addresses holding 1 million to 10 million ETH, which were previously net buyers, have paused purchases, suggesting that confidence in the short-term recovery is waning.
On-chain indicators reinforce the bearish undertone. The MVRV long/short spread has fallen to a four-month low, indicating that long-term holders are losing profitability. Ethereum’s decline could deepen further if it begins offloading to protect its remaining profits.
For now, ETH faces significant downside levels at $2,650 and $2,606. A rebound above $3,000 would be the first sign of strength, but without fresh whale support and easing liquidation pressure, the market could remain vulnerable.
Traders are keeping an eye on this move as it could be just the beginning as liquidity resets and volatility spikes.
Cover image from ChatGPT, ETHUSD chart from Tradingview
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