ETHUSD- Ethereum Price Tumbles by 10% on Panic Selling
Ethereum price (ETHUSD) dropped by about 10% in 24 hours to $1,598.17, underperforming Bitcoin’s 3.92% drop, primarily driven by a cascade of leveraged long liquidations amid a broad altcoin market crash.
ETH dipped as major altcoin sell-off triggered over $1.21 billion in total liquidations, with $935 million from long positions, forcing rapid deleveraging and amplifying Ethereum’s decline.
The move was ignited by a sector-wide altcoin crash, highlighted by Zcash’s 50% plunge. This triggered massive liquidations, wiping out $935 million in leveraged long positions across the market in 24 hours.
Forced selling from these positions created a feedback loop of downward pressure on ETH. High leverage magnified the sell-off, crypto analysts said.
The market cleared a significant amount of speculative long exposure, which can sometimes precede a short-term stabilisation.
ETH decisively broke below the psychologically important $1,825 and $1,975 support levels, confirming bearish patterns like an inverse Adam and Eve setup. This technical failure occurred alongside cratering market sentiment, with the Fear & Greed Index hitting 16 (“Extreme Fear”).
Technical selling and panic contributed to the decline’s velocity. All major moving averages now act as overhead resistance. A daily close above the 61.8% Fibonacci retracement level near $1,641 to signal any potential bid strength.
The immediate path hinges on defending the $1,500–$1,600 support confluence. If buyers step in here, a relief rally could target the $1,825 resistance zone (previous support).
However, failure to hold risks a swift move toward the next major liquidity pool around $1,380. The key trigger is Bitcoin’s price action; if BTC loses the $60,000 level, it would likely renew selling pressure across all altcoins, including Ethereum.
Technical traders said the trend is firmly bearish, but the market is deeply oversold zone, setting up for a potential counter-trend bounce.
Ethereum’s sharp drop was the result of a violent altcoin liquidation cycle, exacerbated by broken technical support and pervasive fear. While oversold conditions suggest a bounce is due, the primary trend remains down. XRP Price Sinks 7% as Investors Unwind Leverage Positions
