Ethereum price is currently trading around $2,290 after crashing to $2,156, its lowest since October 2024. $ETHThe crash coincided with Bitcoin’s fall to $74,500 in the wake of Trump’s hawkish appointment as Federal Reserve chairman and the Iranian port explosion. but, $ETH poor performance $BTC It was a significant decline, dropping more than 20% compared to Bitcoin’s 15% decline.
$306 million wave of liquidations hits long positions
$ETH Derivatives data (Source: Coinglass)
Derivatives markets bore the brunt of the crash. $306.96 million in the last 24 hours $ETH The position was liquidated, leaving $213.92 million long and $93.04 million short. The 2.3x imbalance indicates that the leveraged bulls were caught significantly offside.
Due to forced liquidation of positions, open interest decreased by 4.14% to $28.12 billion. Options volume rose 35.54% to $1.96 billion as traders scrambled to hedge against downside risk.
On Binance, the long/short ratio by account for top traders is 3.32, meaning the majority remains bullish until the breakdown. When one side’s leverage is this high, liquidation cascades accelerate selling pressure beyond what the spot market alone can generate.
BitMine’s $6 billion loss reveals institutional investor concentration risk
This accident exposed vulnerabilities between organizations. $ETH holder. BitMine Immersion Technologies reported more than $6 billion in unrealized losses related to $4.24 million in assets $ETH Financial position and staking activity.
The company pursued a high-volume financial approach to Ethereum, concentrating its exposure on a single crypto asset. President Eric Nelson resigned during a time of financial hardship, marking a significant change in leadership. Bitmine recently increased the number of authorized shares from 500 million to 50 billion, raising concerns among investors about dilution.
Related: $XRP Price prediction:$XRP Trend remains bearish despite capital outflows and declining OI
The situation highlights how the company’s financial strategy, which worked during the 2024 stock rally, has become a liability in the current environment. If institutional investors in financial crisis are forced to sell, it will add supply pressure to an already sluggish market.
Bollinger Band breakdown confirms capitulation
$ETH Price dynamics (Source: TradingView)
On the daily chart, Ethereum broke through the lower Bollinger Band at $2,312.88, which is usually a technical signal indicating an oversold situation or a capitulation. The 20-day SMA is $2,940.59 and the upper limit is $3,568.30, which shows how far the price deviates from the average.
The Supertrend indicator remains bearish at $2,782.37. Prices have now fallen below November’s consolidation range, which held between $2,800 and $3,500, confirming a structural shift from range trading to a continuation of the downtrend.
The low of $2,156 represents a 55 percent decline from September’s high of around $4,800. The current pullback to $2,290 does not confirm a reversal, just a pause in the selling.
Outlook: Will Ethereum Rise?
Prices are below supertrend levels and the trend remains bearish, although the risk of institutional selling remains.
- Bullish case: A daily close above $2,782 would reinstate the supertrend and indicate a capitulation at the $2,156 low. This move requires both macro stabilization and confidence that distressed institutional investors will not force them to sell.
Bearish case: A close below $2,156 would confirm the October 2024 support breakdown and expose the $1,800 demand zone. With $6 billion in unrealized institutional losses and macro headwinds remaining, this scenario has meaningful probability.
Related: Bitcoin Price Prediction: $BTC Warsh Fed appointment and Iran tensions cause $266 million to leak, plummeting to $74,000
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