In the midst of another market downturn, I find myself grappling with a significant drop in Ethereum‘s (ETH) price. For the first time since early November, ETH has dipped below the $3,000 mark. As an analyst, this shift in ETH’s price trajectory is something I’m closely monitoring and analyzing to understand its implications for the broader crypto market.
This situation has led to many forced closures (liquidations) for bulls who had too much leverage, and the number of these events, particularly in ETH-associated trades, has soared close to a staggering $200 million.
According to the graph, the second-biggest cryptocurrency surged past the $3,000 mark following the U.S. elections in early November, and it sustained its growth for the subsequent two months without a significant dip.
Furthermore, the value of the asset reached more than $4,100 on December 16th, but it failed to climb any higher. In the year-end market downturn, ETH dropped to $3,100, but it successfully held its ground at the $3,000 level as a form of support.
At the beginning of 2025, it went on the counterattack. Its highest point for the year was reached on January 7, where it soared to $3,750. Yet, things began to deteriorate from that moment, and ETH, along with the rest of the market, started a downward spiral.
Following that dismissal, Ethereum’s value dropped to around $3,300, where it stayed for a significant portion of the following days. Yet, another descent initiated by the bears today has caused it to fall even more, and just now, it dipped below $3,000 for the first time since early November.
The price of ETH has decreased by a precise 20% from its peak on January 7 ($750 in USD terms). This recent decline was especially tough for traders who had taken on excessive leverage and held long positions, as it resulted in approximately $185 million worth of liquidations, as reported by CoinGlass.
Indeed, the liquidation events on Ethereum have outpaced those experienced by Bitcoin, which saw a temporary drop in value from approximately $96,000 early today down to below $90,000.
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2025-01-13 22:06