Ethereum Crash Below $3,300 Sparks $1.3B Liquidations
Ethereum price plunged below $3,300, sliding to a multi-month low near $3,250 and turning its 2025 performance negative. This Ethereum price crash triggered $1.3B in total liquidations—about $1.1B of long positions wiped out, including $375M in ETH longs—liquidating over 340,000 leveraged traders. The largest single liquidation was a $48M ETH long on HTX. Bitcoin also dipped under $100,000 before rebounding to $103,663 in a 4.5% gain. Analyst Ali Martinez warns that failure to reclaim the $4,000 resistance could push ETH down to $2,400 or even $1,700. Key support now sits near $3,250, with interim levels at $3,800 and $3,400; traders need a 20% rally to retest $4,000. The sharp volatility underscores the risks of overleverage and the importance of robust risk management. Short-term traders should monitor support and resistance closely to navigate potential further ETH liquidation events.
Bearish
The sharp sell-off and $1.3B of forced liquidations reflect a clear bearish impact on ETH, likely triggering short-term downside pressure. Failure to reclaim key resistance at $4,000 and breaches of support near $3,250 raise the probability of further declines toward $2,400 or $1,700. While Bitcoin’s rebound offers some market relief, overleverage concerns and heightened volatility suggest continued bearish sentiment. Traders facing record liquidations will likely reduce net long exposure, reinforcing downward momentum. In the longer term, Ethereum’s ability to stabilize above key support levels will determine if this sell-off marks a capitulation or an extended bear phase.