Peter Smith
Ethereum just got absolutely wrecked. After cruising in the green for almost a month, ETH has taken a brutal hit, dropping roughly 5% in the last 24 hours to trade just under $4,255. But here's the kicker - this weekend's bloodbath has pushed ETH down a whopping 10.6% from its monthly peak above $4,759.
What makes this crash particularly nasty? ETH had been on an absolute tear, racking up over 60% gains this month alone. Now traders are left wondering if this is just a healthy pullback or the start of something much worse.
Why ETH Got Hammered: Liquidation Massacre Unfolds
The carnage is real. Over $870 million in crypto positions got liquidated in just 24 hours, with ETH taking the biggest beating at $210.6 million according to Coinglass data. That's almost double what Bitcoin saw, which tells you just how leveraged traders were betting on ETH's moon mission.
Here's what went down: leveraged longs got completely destroyed over the weekend as ETH smashed through key support levels. This created a nasty domino effect - forced selling triggered more forced selling, and prices just kept getting hammered.
But wait, there's more. Those shiny new Ethereum ETFs that everyone was raving about? They're suddenly not so hot. After their best week ever, they're now bleeding money. SoSoValue data shows five issuers saw heavy outflows, with one massive $272 million withdrawal. Classic profit-taking move from investors who bought the dip earlier this month.
Ethereum (ETH) Price Prediction: What's Next After the Crash?
ETH isn't crashing in isolation - the whole crypto market is feeling the pain. Bitcoin's down 2.3%, while Solana and XRP both took 5%+ hits. The broader selloff comes as everyone's sweating Fed Chair Jerome Powell's upcoming speech and growing uncertainty about rate cuts.
Technically speaking, ETH is hanging by a thread above the 20-day EMA at $4,134. If that level breaks, we're looking at a potential drop to the 50-day EMA around $3,651. That would basically wipe out most of this month's gains - ouch.
The momentum indicators aren't looking too hot either. The RSI has cooled to 58, down from overbought territory above 70. Translation? The buyers are running out of steam. For ETH to get its mojo back, it needs to reclaim $4,500 first, then punch through the $4,750-$4,800 resistance zone before even thinking about new highs.
Peter Smith
