ETH’s Epic Meltdown: Will Your Crypto Wallet Survive the $2,200 Plunge? 💸

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Key takeaways:

  • ETH price dropped to its yearly open at $3,330 on Tuesday, wiping out more than $484.5 million on long ETH leveraged positions. 🤭

  • Risk-off behavior among derivatives traders weighs down Ether’s price. (Translation: Everyone panicked. Again.)

  • The ETH price chart is forming a bearish pennant, targeting $2,400. Because nothing says “confidence” like a geometric shape predicting your financial ruin. 📉

Ether (ETH) tumbled toward the $3,000 level on Tuesday, marking the first time it had revisited the psychological mark since mid-July. Because why settle for a midlife crisis when you can have a mid-year identity crisis? 🧓

The top altcoin fell as much as 16% to 3,050 on Tuesday, before recovering to the current price of $3,300, per CryptoMoon Markets Pro and TradingView. So, it’s like your friend who swears they’re “sober” after three margaritas. 🤹

This level coincides with the Jan. 1 open at $3,330, implying that ETH has erased its year-to-date gains. Congratulations! You’re back to where you started, but with less hope and more therapy bills. 🎉

The latest sell-off has extended Ether’s drawdown from its Aug. 24 all-time high of $4,955 to 33%. That’s not a dip-it’s a swan dive into a pool of existential dread. 🦢

Ether wipes out $485 million in long ETH positions

Ether’s bearish performance today was accompanied by significant liquidations across the crypto market. According to data from CoinGlass, more than $1.7 billion leveraged crypto positions have been liquidated over the last 24 hours. Wiping out $484.5 million in long positions? That’s not a bad Tuesday, that’s a divorce lawyer’s dream. 💍💔

Long Ether liquidations amounted to $484.8 million, with the tally continuing at the time of publication. Because nothing bonds strangers like mutual financial ruin. 👫

The largest single liquidation order occurred on the Hyperliquid decentralized exchange involving an ETH/USD pair worth $26 million. Congrats, you’re now the proud owner of a cautionary tale. 🚨

The scale of these liquidations mirrors the Aug. 1 liquidation event, when a total of $500 million in long ETH positions were wiped out. This triggered a 14% drop in ETH price between Aug. 1 and Aug. 2. History doesn’t repeat-it rhymes. Like a really depressing poem. 📜

Ether’s bearish pennant targets $2,380

From a technical perspective, the ETH/USD pair has formed a bearish pennant pattern in lower time frames. This is a downward continuation setup that forms after the price consolidates inside an up-sloping triangle following a sharp price drop. Or, as I call it, “the crypto equivalent of tripping over your own feet.” 🕵️

Ether is now retesting the lower boundary of the pennant, currently at $3,300, which is acting as immediate support. Because nothing says “support” like a number on a screen you’ve memorized like your ex’s birthday. 🎯

The pattern will resolve once the price breaks below this level, opening the path for the continuation of the downtrend toward the technical target of the bearish pennant at $2,380, representing a 29% decline from the current price. Buckle up, buttercup. 🚀

However, the relative strength index, or RSI, has increased to 33 from extreme oversold conditions at 18 twelve hours ago, suggesting the ongoing recovery may persist for longer as dip buying continues. Because nothing says “recovery” like buying the dip that keeps on dipping. 🐢

A daily candlestick close above the resistance level at $3,400 can help Ether’s price reach the 50 SMA at $3,700 and later to $4,000, which would be a good sign for the bulls in regaining control. Bulls? In this economy? 🐄

For analyst Don Laguzzi, Ether’s upside remains intact as long as the price remains above the $2,800-$3,000 zone in the coming days. The analyst insists the weekly chart is flashing a “massive W pattern,” which, in crypto terms, means either a bull market or a very expensive wish. 🧐

“Wall Street needs to defend this zone.”

Conversely, the bears will attempt to drive the price below $2,750, which would invalidate the double-bottom bullish setup and potentially lead to a decline to $2,200. Because bears don’t care about your retirement plan. 🐻

As CryptoMoon reported, the bears are currently in control, and a decisive close below the psychological support level of $3,000 would clear the path for a deeper correction that can extend to $2,200 or lower. Spoiler: It’s going lower. 🧱

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2025-11-05 18:43