Ethereum’s price (ETH-USD) has taken a sharp turn lower this week, slipping to levels not seen since July. The second-largest cryptocurrency dropped as much as 16% to $3,050 on Tuesday before recovering slightly to around $3,350.
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This level matches Ethereum’s January 1 open near $3,330, meaning the token has now given up its entire year-to-date advance. The broader sell-off has also pushed Ether’s losses to 33% from its August high of nearly $4,955, reflecting a decisive shift in sentiment across the crypto market.
Heavy Selling Hits Leveraged ETH Traders
The latest decline came with heavy liquidations. Over the past 24 hours, more than $1.7 billion in leveraged crypto positions have been wiped out, including about $485 million tied to long ETH bets, according to CoinGlass.
The largest single liquidation, worth roughly $26 million, occurred on the Hyperliquid decentralized exchange. Analysts note that this scale of forced selling is similar to previous liquidation cascades in August and September, which also triggered sharp short-term declines.
The surge in liquidations highlights the risk of leveraged trading in a weak market. It also suggests that many traders were caught off guard by Ethereum’s sudden drop below key technical levels.
Ethereum’s Charts Signal a Bearish Pattern
From a technical standpoint, Ethereum’s chart is forming a bearish pennant, a continuation pattern that often signals more downside. The token is currently testing the lower edge of that structure near $3,300, a key level of support.
A break below that threshold could set up a move toward $2,380, based on the pennant’s projected target. Traders see that zone as the next area of potential buying interest if the downtrend deepens.
Still, there are signs of near-term relief. The Relative Strength Index (RSI) has bounced from extreme oversold levels, suggesting dip buyers may be stepping in around the $3,000 area. A daily close above $3,400 could open the door to a recovery toward $3,700 or even $4,000 if momentum improves.
Can Bulls Defend the $3,000 Zone?
Analyst Don Laguzzi said Ethereum’s weekly chart is still flashing a W-shaped formation, a pattern often seen before bullish continuation. He believes the uptrend remains intact as long as Ethereum holds between $2,800 and $3,000.
“Wall Street needs to defend this zone,” Laguzzi wrote on Wednesday.
If bulls fail to hold the line, however, traders warn that the next leg lower could target $2,200, marking Ethereum’s weakest level since late 2024. For now, the $3,000 price stands as the zone between short-term relief and a deeper correction.
At the time of writing, ETH is sitting at $3,385.29.
