Ethereum fell to $2,172 during Asian trading, its lowest level in eight months, before stabilizing a little above $2,200 at the time cited in the source material. The move left ETH down more than 11% over 24 hours and more than 25% below its roughly $3,000 level from last Thursday. The drop marked a fifth straight daily decline.
Long liquidations intensified the downside move
A major part of the sell-off came from leveraged positions being forced out of the market. CoinGlass data cited in the report showed that more than $757 million in crypto leverage was liquidated over the past 24 hours, with long positions making up most of that total. Ethereum traders absorbed a large share of the damage, as $213.59 million in ETH longs were liquidated, including nearly $182.34 million within the first 12 hours.
That kind of unwind creates automatic selling. The article also noted that a liquidation wave that started over the weekend had already wiped out more than $2.4 billion in long positions, keeping traders on the defensive. At the same time, Bitcoin fell below $80,000 and Ethereum lost support at $2,800, then slipped toward the $2,600 area as key levels gave way.
Whale sales and ETF outflows added pressure
Large holders were selling into the weakness. According to Santiment data referenced in the piece, wallets holding between 10,000 and 1 million ETH sold billions of dollars worth of Ether over the past week. Heavy distribution from that group tends to weigh on sentiment because it signals less conviction from some of the market’s biggest holders.
Institutional flows also turned negative. The report said Ethereum ETFs recorded nearly $327 million in outflows over the past week, showing that some investors reduced exposure as the market weakened. With spot selling, whale exits and liquidations hitting at the same time, the short-term picture deteriorated quickly.
Macro headlines weakened risk appetite
The source tied part of the move to macro developments in the United States. Donald Trump’s nomination of Kevin Warsh as the next Federal Reserve chair shifted expectations around monetary policy, while a partial U.S. government shutdown that began early Saturday added uncertainty and slowed the flow of data and regulatory progress.
Those factors hit major crypto assets broadly, not just Ether. At the time referenced in the report, the Crypto Fear & Greed Index stood at 14, placing the market in extreme fear.
Two bearish chart patterns were confirmed on the daily timeframe
On the daily chart, the article said Ethereum had broken down from a rising wedge, a bearish setup formed by two ascending and converging trend lines. That breakdown was followed by a move below the neckline of a much larger inverse cup-and-handle pattern that had been forming since mid-2025.
With both patterns confirmed, the technical picture remained weak. The report said continued selling pressure could push ETH toward the $2,000 psychological level. Momentum indicators pointed the same way: MACD lines were sloping lower, while RSI had fallen into oversold territory. An oversold RSI can precede a rebound, but the source noted that any relief rally could still be capped by broad bearish sentiment.