Ethereum Endures Historic Liquidation Week: Largest Sustained Liquidation Phase Since 2021
Ethereum continues to trade below the critical $2,000 level, reflecting persistent market pressure as traders await a clearer directional catalyst. The inability to reclaim this psychological threshold has kept sentiment cautious, with volatility elevated and liquidity conditions still uncertain. While price action has stabilized somewhat after recent declines, the broader structure suggests the market is preparing for a decisive move that could define Ethereum’s short-term trajectory. Price action reflects a clear rejection from the $3,000 region earlier in the cycle. Followed by a sequence of lower highs that typically characterizes transitional or corrective phases. The latest decline also coincides with rising trading volume, often associated with distribution or leveraged position unwinding rather than organic accumulation. This dynamic reinforces the perception of ongoing market stress rather than stabilization.Related Reading
From a structural standpoint, the next meaningful support area appears around the mid-$1,500 to $1,700 zone, where previous consolidation and demand emerged in earlier phases. Holding above this range would help preserve the broader long-term bullish framework, even amid current weakness. A sustained break below it, however, could shift sentiment toward a deeper corrective cycle.
Ethereum remains sensitive to macro liquidity conditions, derivatives positioning, and overall crypto market sentiment, with recovery dependent on renewed spot demand and stabilization above key technical levels.
Featured image from ChatGPT, chart from TradingView.com
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