Ethereum Price Plunges After Whale Liquidations Trigger Massive Sell-Off

Ethereum experienced a sharp market shock after an explosive surge in trading volume triggered a steep price decline, erasing key technical support levels within hours. The sudden drop appears to have been fueled by forced liquidations and rapid exits from large whale positions, significantly increasing sell-side pressure across the broader crypto market. This event comes after weeks of sustained weakness in Ethereum’s price action, which had already shown signs of structural fragility.

For an extended period, ETH struggled to hold above the critical $2,800 support zone on the daily chart. Multiple attempts to regain major moving averages failed, with bullish momentum repeatedly rejected at key resistance levels. This persistent inability to reclaim trend-defining indicators signaled growing vulnerability. Once a massive spike in sell volume entered the market, that fragile structure collapsed, sending Ethereum decisively below support and accelerating downside momentum.

The sharp volume increase strongly suggests that large leveraged positions were liquidated as prices moved lower. Automated liquidations, combined with panic-driven selling, intensified the decline once important support zones were breached. As a result, Ethereum rapidly slid toward the $2,300–$2,400 price range, a level now being closely monitored by traders and analysts. Such rapid moves are often associated with whales or institutional investors being forced to sell due to margin calls or proactively reducing risk amid broader market uncertainty.

From a technical perspective, Ethereum is now trading well below its key moving averages, which have shifted into overhead resistance. Momentum indicators remain weak, reinforcing the idea that sellers currently control the short-term trend. While oversold conditions could spark brief relief rallies, any meaningful recovery may take time due to the damage done to Ethereum’s overall market structure.

In the near term, price volatility is likely to remain elevated as traders assess whether the recent sell-off represents capitulation or simply another leg lower. Until Ethereum can reclaim major resistance levels and stabilize above key technical thresholds, bearish pressure may continue to dominate market sentiment.