Ethereum Price Crashes Over 20% as BitMine Buying Power Fades and Liquidations Surge

Ethereum’s native token, Ether (ETH), has plunged more than 20% in a dramatic two-day selloff that mirrors the October 10 flash crash. After trading near $4,000 early Monday, ETH tumbled to roughly $3,000 by Tuesday afternoon, marking its lowest level since mid-July. The latest decline follows last month’s 25% drop from $4,500 to $3,440, underscoring renewed volatility in the crypto market.

As of Tuesday evening, ETH hovered around $3,200, down nearly 9.4% in 24 hours, according to market data. The sharp downturn triggered over $970 million in liquidations across leveraged ETH derivatives markets, with most of the losses coming from long positions as traders were forced to exit amid collapsing support levels, data from CoinGlass shows.

According to Markus Thielen, founder of 10x Research, ETH’s breakdown has opened the door for further declines, warning that there’s now “little support below.” Thielen pointed to BitMine, the largest ETH treasury holder, as a major factor in the current slump. After months of aggressive buying, the firm appears “fully tapped out,” limiting its ability to stabilize prices.

BitMine reportedly holds 3.4 million ETH at an average cost of $3,909, leaving it with over $2 billion in unrealized losses. Thielen emphasized that while liquidation risk remains low, the absence of new institutional or retail buyers is concerning.

ETF inflows, which fueled ETH’s summer rally, have also stalled—falling from $9.5 billion in July–August to just $850 million since October. Meanwhile, Google search interest for Ethereum has plummeted to 13% of its peak, signaling fading retail enthusiasm.

With these catalysts gone, analysts now see $2,700–$2,800 as Ethereum’s next potential support zone amid weakening demand and market sentiment.