Ethereum (ETH) Price: Token Crashes Below $3,000 as Liquidations Hit $600 Million

TLDR

• Ethereum price dropped below $3,000 to around $2,900-$2,950, falling roughly 5-7% in 24 hours as nearly $600 million in leveraged crypto positions were liquidated across the market.
• Weekly active addresses on the Ethereum network plunged from 440,000 to 324,000 in December, reaching levels last seen in May, while transaction counts dropped to July lows.
• US spot Ethereum ETFs recorded three consecutive days of outflows totaling $224.78 million, with total net assets falling from $21.43 billion to $18.27 billion since December 10.
• The Coinbase Premium Index turned negative, indicating US-based selling pressure has returned to dominate market activity following a strong job market report showing unemployment at 4.6%.
• Technical indicators show bearish momentum persists with ETH testing support at $2,850, while resistance clusters around $2,980-$3,120, and $104.9 million in liquidations occurred in 24 hours.

Ethereum price has fallen below the $3,000 level for the first time in weeks. At the time of writing, ETH trades around $2,900 to $2,950, representing a drop of approximately 5-7% over 24 hours.

The second-largest cryptocurrency by market cap saw its valuation slip toward the mid-$340 billion range. This decline came as part of a broader market liquidation event that wiped out nearly $600 million in leveraged positions across the crypto market in a single day.

Ethereum fell about 6.9% to roughly $2,904 during the liquidation wave. The slide extended a downtrend that began in November when ETH lost the $3,590 support level on 138% above-average selling volume.

The breakdown occurred as Bitcoin also pulled back, with correlations between the two largest cryptocurrencies contributing to the selling pressure. Over the past 24 hours alone, Ethereum recorded $104.9 million in liquidations, with $73.6 million coming from long positions.

Network Activity Drops to Multi-Month Lows

Weekly active addresses on the Ethereum network have declined sharply in December. The metric dropped from 440,000 to 324,000, reaching levels last seen in May.

Transaction counts on the network have also fallen to July lows. This decline in network activity suggests investors are moving to the sidelines.

The reduction in active addresses typically indicates weakening demand on the network. When fewer users interact with the blockchain, it can lead to sideways or declining price action until activity picks up again.

US spot Ethereum exchange-traded funds have posted three consecutive days of net outflows. The outflows totaled $224.78 million over that period.

US Selling Pressure Returns

The Coinbase Premium Index has crossed into negative territory. This index compares ETH prices on Coinbase to prices on Binance.

When the index falls below zero, it means ETH’s price on Coinbase is lower than on Binance. This pattern indicates selling pressure from US-based investors has returned to dominate market activity.

The shift followed a strong job market report showing the unemployment rate hit 4.6%, its highest level since 2021. Since December 10, the total net assets of US spot Ethereum ETFs have fallen from $21.43 billion to $18.27 billion.

Short-term traders are watching the $2,820 to $2,830 zone closely. This area has acted as a support level in recent weeks, with on-chain MVRV deviation bands showing some buyers still see value at these prices.

Ethereum currently trades below its 100-hour simple moving average. A bearish trend line is capping recovery attempts near $3,120 on intraday charts.

ETH bounced off the $2,850 support level but faces resistance at multiple levels. The first resistance sits around $2,980, followed by $3,050 and then $3,080 to $3,120.

A move above the $3,080-$3,120 band could open a path back toward $3,175-$3,200. However, failure to reclaim $2,980 and $3,000 with volume leaves ETH vulnerable to further declines.

The downside targets include $2,920 and potentially $2,880-$2,840. If those levels break, $2,800 becomes the next critical support line. Some analysts suggest ETH could fall toward the $2,400-$2,600 range if it breaches $2,850.

Technical indicators remain bearish on hourly timeframes. The MACD on ETH/USD continues gaining momentum in negative territory. The RSI sits below 50, showing sellers remain in control rather than exhaustion.

The Stochastic Oscillator has crossed into oversold territory. Oversold conditions in this indicator could trigger a short-term bounce, though the broader trend remains down.

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