Ethereum Price Drops to $2,255 Amid Panic Selling and Whale Liquidations

Ethereum (ETH) has plunged to $2,255, marking a sharp correction driven by panic selling among small to mid-sized whales and swing traders. This downturn, more psychological than structural, has seen prominent wallets offload large amounts of ETH within the narrow $2,378–$2,412 price band. Thousands of positions were liquidated by well-known trading addresses, signaling capitulation rather than strategic exits.

As ETH broke below critical support and key moving averages—including the 50-day and 200-day lines—the market has shown clear signs of distress. A steep red candlestick pattern has dominated recent sessions, reinforcing bearish momentum. The breach of the $2,369 level, once a vital support and moving average confluence, highlights the growing dominance of sell-side pressure.

Adding to bearish sentiment is the surge in trading volume accompanying the price drop—often a sign of panic-driven exits and overshooting to the downside. Currently, ETH is trading far below both its 50 and 100 exponential moving averages, with the next possible support zone seen between $2,100 and $2,150.

Despite the selloff, Ethereum’s core fundamentals, including robust network activity and continued Layer-2 adoption, remain intact. However, until volatility cools and sentiment stabilizes, ETH may stay under pressure. The current trend indicates a temporary breakdown rather than total collapse, but further downside could follow if retail investors mirror the whales’ behavior.

Traders are advised to watch for potential recovery signals such as RSI-based oversold bounces or increased accumulation at lower levels. Market sentiment remains fragile, and the next few sessions will be crucial in determining whether Ethereum finds a foothold or continues its slide.