Why Is Ethereum ($ETH ) Crashing Today?
Despite recent bullish attempts and increased whale activity, Ethereum's price continues to struggle, reflecting a broader market sentiment of uncertainty and caution
Current Stats:
Price: $1,803
24h Change: -1.5%
Volume: $10.52B (+12%)
In the past 24 hours, Ethereum dropped from $1,840 to $1,785, briefly recovered, then dipped again—highlighting a strong bearish trend in play.
What’s behind this?
1. Massive Liquidations:
Over $37.45 million in long positions were liquidated (Coinglass), triggered by a sharp pullback that wiped out overleveraged trades.
2. Declining Open Interest:
Open interest is falling, suggesting traders are closing positions—often a sign of decreasing confidence in short-term price recovery.
3. Heightened Volatility:
A 12% surge in trading volume with falling prices points to panic trading and uncertain market conditions.
4. Security Concerns:
Vitalik Buterin recently raised issues about Layer-2 security, which may have added to the short-term pressure.
Bottom Line:
While the macro sentiment remains cautious, the long-term fundamentals of Ethereum are strong. However, in the short term, volatility is expected to continue.
