At the time of writing, Ethereum is trading between $2,150 and $2,200, down sharply from recent highs near $2,450. This marks one of ETH’s steepest single-day declines in months and highlights growing instability across the broader crypto market.
Sharp Decline Breaks Key Technical Levels
Ethereum’s fall accelerated after it lost support at $2,300, a level that had previously acted as a strong demand zone. Once that floor cracked, sell orders flooded the market, pushing ETH quickly toward the lower $2,100 range.
From a technical perspective, ETH is now trading below its 50-day and 100-day moving averages, signaling a bearish trend. Trading volume spiked by nearly 38% over the 24-hour average, a clear sign of panic selling rather than slow profit-taking.
Market data shows Ethereum’s market capitalization dropped by approximately $28 billion in one day, shrinking from around $285 billion to near $257 billion.
Liquidations Surge as Leverage Gets Wiped Out
One of the biggest drivers behind the sharp sell-off was forced liquidation. According to derivatives market data, more than $650 million in Ethereum positions were liquidated in 24 hours, with nearly 72% coming from long positions.
This suggests that a large number of traders were betting on ETH price stability or a bounce higher. When prices moved against them, leveraged positions were automatically closed, adding further downward pressure.
Ethereum’s open interest declined by nearly 12%, confirming that traders are pulling back and reducing exposure amid rising volatility.
$2,100 Support Level Now Under the Microscope
The $2,100 level is not just psychological it’s historically significant. Over the past 12 months, Ethereum has bounced from this zone multiple times, making it a key battleground between bulls and bears.
On-chain data shows a high concentration of wallet activity between $2,050 and $2,150, suggesting strong buyer interest in this range. Roughly 1.9 million ETH were previously accumulated here, which could help slow or temporarily halt the decline.
However, if ETH fails to hold $2,100, analysts warn the next downside targets could be $1,980 and potentially $1,850, levels not seen since early last year.
Market Sentiment Turns Risk-Off
Ethereum’s drop mirrors broader risk-off behavior across digital assets. Bitcoin also slipped, dragging overall crypto market capitalization down by nearly 6% in a single session.
The Crypto Fear & Greed Index slid from 52 (Neutral) to 38 (Fear) overnight, reflecting rapidly deteriorating sentiment. Social metrics also show a spike in bearish mentions, historically associated with short-term bottoms but not guaranteed reversals.
What Comes Next for Ethereum
In the short term, Ethereum remains vulnerable. Momentum indicators such as RSI are hovering near 32, approaching oversold territory but not yet signaling a confirmed reversal.
If buyers defend $2,100 successfully, ETH could attempt a relief bounce toward $2,300-$2,350. However, reclaiming bullish momentum would require sustained volume and a break above $2,400, which now acts as major resistance.
0 Comments