Crypto Liquidations Top $700M as Bitcoin, Ethereum and Altcoins Extend Selloff

The broader crypto market

From here, Ethereum’s short-term outlook hinges on whether $2,000 can hold as a stabilization zone. A sustained failure below this level would keep pressure on the downside, while consolidation could allow volatility to compress as leverage resets.

Market Outlook

Today’s market sell-off carries a clear message: the market was over-leveraged. The $700M liquidation wave acted as a reset mechanism, forcing out crowded bullish positions without triggering mass spot exits. If liquidation pressure continues to ease and open interest stabilizes, markets may attempt to consolidate at lower levels. However, until Bitcoin and Ethereum reclaim broken supports, volatility is likely to remain elevated. For now, crypto markets are not collapsing, they are deleveraging. History shows that how price behaves after leverage resets often defines the next major trend.

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