Ethereum (ETH) has slumped 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 a broader sell-off in global risk assets, from unprofitable technology stocks to high-flying AI companies, as investors grow increasingly nervous about aggressive spending and expanding valuations.
Market data showed that Ethereum fell as much as 5.5% early in the session due to a wave of liquidation flows, mainly due to fear. ETH is currently trading around $2,701, a steep weekly decline of more than 15%, and the asset is more than 45% below its August all-time high.
ETH's price trends to the downside on the daily chart. Source: ETHUSD on Tradingview
Leverage Wipeout: $150 Million Liquidation Accelerates Downturn
What makes Ethereum's decline different from the rest of the market is the large amount of leverage released. Within 24 hours, a long liquidation of nearly $150 million was recorded, a huge surge that automatically closed bullish positions as prices fell.
Market depth thins, volatility increases, and aggressive price movements occur. Analysts say leveraged perpetual futures, widely used for both hedging and speculation, are a double-edged sword. If sentiment reverses, liquidations will add downward pressure and push prices even lower.
Technically, Ethereum is currently trading inside a descending wedge, with the lower limit being tested repeatedly near $2,930. This structure often precedes a bullish breakout, but the opportunities for a sideways move are quickly narrowing. Key resistance levels of $3,000 and $3,200 will need to be recovered before buyers can gain momentum.
Whale behavior and on-chain indicators indicate further weakness.
Moreover, the accumulation rate of Ethereum whales has also slowed down. Large addresses holding between 1 and 10 million ETH, which were previously net buyers, have paused their purchases, suggesting confidence in a near-term recovery is waning.
On-chain indicators strengthen the bearish trend. The MVRV long/short differential has fallen to a four-month low, indicating that long-term holders are losing profitability. Ethereum's downturn could deepen further as it begins offloading to protect its remaining profits.
Currently, ETH is facing serious downside levels of $2,650 and $2,606. A bounce above $3,000 would be the first sign of strength, but without new whale support and relief from liquidation pressure, the market could remain vulnerable.
As liquidity resets and volatility surges, traders are watching these moves closely as they could be just the beginning.
Cover image by ChatGPT, ETHUSD chart by Tradingview
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