Saad Ullah
Ethereum (ETH) just crashed to $3,800 – a brutal 20% drop from its monthly peak of $4,978. Bitcoin and XRP are getting hammered too, showing how connected everything is in crypto.
What's got ETH holders spooked is how the price smashed through key support levels. Now everyone's wondering: is this just a dip, or are we heading for something much worse?
ETH Liquidations Hit Nearly $1B
The main reason behind Ethereum's nosedive? A tsunami of liquidations destroying leveraged traders. We're talking close to $1 billion in forced selling this week.
Monday was brutal – over $490 million in bullish positions got wiped out. Friday hit with another $413 million in liquidations, plus $50 million earlier in the week. When exchanges force-close leveraged positions, it creates a nasty domino effect that feeds on itself.
Institutional Money Flees ETH
Big money is pulling out fast. Spot Ethereum funds just lost over $547 million – a complete flip from the week before when they gained $556 million.
When institutional investors run for the exits, that's bad news. These smart money folks are getting seriously worried about where Ethereum's headed. Add in profit-taking from retail investors, and you've got selling pressure hitting ETH from all sides.
Fed Worries Push ETH Lower – Technical Target at $3,300
Federal Reserve officials like Beth Hammack, John Williams, and Raphael Bostic warned that more rate cuts might make inflation stickier. Then Trump announced new tariffs on imported drugs and pharmaceuticals Thursday, adding more inflation fears.
From a technical standpoint, ETH has broken below the 23.6% Fibonacci retracement and 50-day moving average. Worse yet, it's formed a triple-top pattern pointing to a potential $3,300 target – that's another 16% drop from here.
The bearish forecast gets invalidated only if ETH rallies back above $4,400. But there are some bright spots: Vanguard might enter crypto, Fusaka upgrades are coming, and more retirement funds are adding digital assets.
Saad Ullah
