The day after breaking below $2,400, Ethereum got hammered again.
After last night’s PPI data came in, the market took another leg down, with the intraday low reportedly touching around $2,326. The technical picture is even more painful: the $2,390 support level that had held for two months since mid-August has now been decisively broken, and this time the price failed to reclaim it on the retest. Over the past 11 days, Ethereum has shed a cumulative 12.5%—more than twice Bitcoin’s decline. A year ago, it was trading above $4,100; now it sits 52% below its all-time high of $4,953.
But cracks are starting to show in the bears’ camp, too. Short positions reportedly total around $8.71 billion, while longs stand at just $676 million. That 13-to-1 gap signals extreme crowding. Meanwhile, data shows whales are quietly reducing their short positions, and the imbalance between long and short positions has narrowed noticeably. With shorts so crowded and whales covering, some in the market are already talking about the possibility of a rebound to $3,000.
The macro backdrop remains a dark cloud overhead: South Korea’s KOSPI plunged 7.57% yesterday, triggering a circuit breaker and closing at 5,554.22 points. It fell for a seventh straight session, at one point dropping 9.29% intraday, while Samsung and SK Hynix slumped 9.5% and 11.1%, respectively. The market is starting to question the sustainability of AI capital spending, and rising expectations of Fed rate hikes have further soured risk sentiment across Asia—especially bad news for a high-beta asset like Ethereum.
View: The breakdown is real, and the trend has not yet reversed. But before the FOMC meeting concludes on October 27–28, the area around $2,300 is more likely to see choppy bottoming than a straight-down collapse. The risk-reward for chasing shorts in the short term is getting worse, and a sharp squeeze driven by short covering could happen at any time.
#EthereumDropsBelow$2400
#ETH #Liquidations
This is not investment advice. DYOR; trading involves risk.
After last night’s PPI data came in, the market took another leg down, with the intraday low reportedly touching around $2,326. The technical picture is even more painful: the $2,390 support level that had held for two months since mid-August has now been decisively broken, and this time the price failed to reclaim it on the retest. Over the past 11 days, Ethereum has shed a cumulative 12.5%—more than twice Bitcoin’s decline. A year ago, it was trading above $4,100; now it sits 52% below its all-time high of $4,953.
But cracks are starting to show in the bears’ camp, too. Short positions reportedly total around $8.71 billion, while longs stand at just $676 million. That 13-to-1 gap signals extreme crowding. Meanwhile, data shows whales are quietly reducing their short positions, and the imbalance between long and short positions has narrowed noticeably. With shorts so crowded and whales covering, some in the market are already talking about the possibility of a rebound to $3,000.
The macro backdrop remains a dark cloud overhead: South Korea’s KOSPI plunged 7.57% yesterday, triggering a circuit breaker and closing at 5,554.22 points. It fell for a seventh straight session, at one point dropping 9.29% intraday, while Samsung and SK Hynix slumped 9.5% and 11.1%, respectively. The market is starting to question the sustainability of AI capital spending, and rising expectations of Fed rate hikes have further soured risk sentiment across Asia—especially bad news for a high-beta asset like Ethereum.
View: The breakdown is real, and the trend has not yet reversed. But before the FOMC meeting concludes on October 27–28, the area around $2,300 is more likely to see choppy bottoming than a straight-down collapse. The risk-reward for chasing shorts in the short term is getting worse, and a sharp squeeze driven by short covering could happen at any time.
#EthereumDropsBelow$2400
#ETH #Liquidations
This is not investment advice. DYOR; trading involves risk.