Ethereum Price Drops Below $3,000 as Bears Gain More Ground – Cryptocurrency Market in Trouble
Ethereum can’t catch a break. The top altcoin fell below $3,000, breaching this key psychological level like butter. It fell 8%, leaving $100 million in realized losses in its wake.
Panic selling is well underway, and all eyes are now on the $2,817 support level. If this cracks, Ethereum could be headed for darker days.
Quinglass Data Shows $182 million in Ethereum futures liquidations in the last 24 hours. Long-term traders were completely devastated, accounting for $152.5 million of that liquidation. The shorts weren’t entirely safe either, with $29.84 million wiped out.
Add to that the 30-day market-to-realized-value (MVRV) ratio falling below -10%, and there is a faint sign of a potential recovery in prices. Historically, MVRV levels this low have been where ETH has found its footing. But this market is not very optimistic, at least not now.
Ethereum ETFs are bleeding, and investors are not happy
The carnage is not limited to live ETH trading. US exchange-traded funds (ETFs) had a rough week, posting their biggest outflows since July. Over $186 million has been pumped in, a clear sign that even institutional players are starting to lose their nerve. BlackRock stood alone, generating net inflows of $124.1 million, but that’s just one bright spot in a very dark landscape.
The network’s realized P/L metric adds another layer of misery. Investors cashed out losses worth $100 million in just 24 hours. That’s a lot of red for one day. However, strangely enough, the average coin lifetime metric – which tracks how long Ethereum stays in wallets – has been creeping up.
What does that mean? Some brave souls buy the dip, hoping for a bounce. But whether this is genius or foolishness will depend on what happens next.
ETH technical patterns are adding fuel to the bearish fire. The round top and double top were completed before the token dropped below $3,000. The $2,817 support level, which remained strong between April and July, is now the market’s last hope. If it fails, Ethereum could plunge further into uncharted waters.
Bitcoin is dragging cryptocurrency and technology stocks lower
Ethereum isn’t the only one bleeding here. Bitcoin, the big brother of cryptocurrencies, briefly fell below $90,000 before recovering to $92,177.79. That’s a 9% drop for the week. Bitcoin even reached $89,259 at one point. The cryptocurrency market as a whole is on shaky ground.
Cryptocurrency-related technology stocks are also in trouble. Coinbase shares fell 4%. MicroStrategy, which owns a mountain of bitcoin, fell 3%. Mining companies were not spared either, with Mara Holdings falling 6% and Core Scientific losing 4%.
The sell-off is part of the broader market’s reaction to stronger-than-expected payroll numbers that pushed bond yields higher. Add President Donald Trump’s tariff plans to the mix, and the dollar is strengthening, putting pressure on risky assets like cryptocurrencies.
With the arrival of 2025, cryptocurrency enthusiasts are very excited. The pro-crypto Congress and White House seemed like a dream. The hype has overshadowed any concerns about macroeconomic hiccups. But the events of the past week have changed the narrative.
Investors are bracing for a tough first quarter as market turmoil shows no signs of abating. Bitcoin’s impressive 120% gain in 2024 seems like a distant memory now.
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