Ethereum Price Tanks Below $2,200 as Liquidations Soar – Is a Bigger Crash on the Horizon?

Ethereum Price Collapses Below $2,200 – Is ETH Headed for a Deeper Breakdown or a Rebound?

Ethereum (ETH-USD) Faces Extreme Sell-Off as Liquidations Exceed $609 Million

Ethereum (ETH-USD) is in freefall, plunging over 25% in just days, breaking key support levels, and triggering mass liquidations across the crypto market. After touching a low of $2,100, Ethereum is struggling to hold onto its footing, with traders fearing a possible dive to $2,000 or lower. This price collapse comes as global markets react to a wave of new tariffs imposed by U.S. President Donald Trump, creating a ripple effect across financial and cryptocurrency markets alike.

Liquidations in Ethereum futures markets have surpassed $609 million, with leveraged long traders suffering the most damage. Bitcoin (BTC-USD) also took a hit, slipping under $91,000 before bouncing slightly, but Ethereum has underperformed relative to Bitcoin, signaling weaker investor confidence in ETH’s recovery. The dominance of Bitcoin over Ethereum is widening, with the ETH/BTC ratio hitting its lowest level in over 30 months, showing a clear shift in investor preference toward BTC over ETH.

Ethereum's Multi-Year Trendline Faces Breakdown as Bears Take Control

Ethereum’s price is now at a critical multi-year ascending trendline, which has held strong for nearly 966 days. A breakdown here would confirm a bearish trend reversal, potentially leading to a larger market-wide collapse. The $2,200 support zone is the last line of defense—a failure to hold could accelerate Ethereum’s losses to $1,900 or even $1,500.

On the weekly chart, Ethereum has already broken below its 100-day and 200-day moving averages, confirming the shift toward a bearish cycle. If the $2,200 level fails, Ethereum could erase all gains made in the past year, effectively resetting back to early 2023 price levels.

Ethereum Faces Competitive Pressure from Solana and Layer-2s

Ethereum is losing ground to alternative blockchain ecosystems. Solana (SOL-USD), which has seen record-high daily transactions, continues to eat into Ethereum’s dominance. While Ethereum still holds 58% of all DeFi Total Value Locked (TVL), that number is shrinking as cheaper, faster alternatives gain traction.

Ethereum’s lackluster performance in spot ETF inflows is another red flag. While Bitcoin ETFs have amassed over $40 billion in assets, Ethereum’s ETF inflows remain sluggish, barely crossing $2.76 billion since their September launch. Institutional demand for Ethereum is significantly weaker than expected, leading to a lack of sustained buying pressure.

Ethereum Whales Dump ETH – Panic Selling or Smart Reallocation?

Adding to the bearish sentiment, on-chain data reveals that Ethereum whales are offloading massive amounts of ETH. Two dormant whale wallets, inactive for six years, suddenly moved 135,548 ETH ($399 million) to Bitfinex, likely preparing to sell. Their perfectly timed deposits just before the market crash raise speculation that large investors anticipated the decline and acted accordingly.

This marks a sharp contrast from Bitcoin, where whales have been accumulating rather than selling. If Ethereum's largest holders continue to exit the market, it could lead to prolonged selling pressure, pushing ETH toward $2,000 or lower.

Ethereum Technical Analysis – Can ETH Avoid a Collapse Below $2,000?

The technical indicators for Ethereum remain deeply bearish, showing no immediate signs of a strong recovery. The Relative Strength Index (RSI) has dropped below 30, indicating oversold conditions, but history suggests that oversold levels can stay low for extended periods in a strong bearish trend.

The Moving Average Convergence Divergence (MACD) is flashing strong bearish momentum, with the histogram expanding to the downside. Additionally, Ethereum’s price failed to reclaim its previous support levels, confirming the continuation of its downward trend.

Key support levels to watch:

• $2,200 – This is the most crucial support level. A breakdown could accelerate Ethereum’s decline.
• $2,000 – A psychological barrier and potential bounce zone.
• $1,850-$1,900 – Major support from mid-2023. If Ethereum reaches this range, it would erase most of last year’s gains.

On the upside, Ethereum faces stiff resistance at:

• $2,500 – The next key resistance level. A break above this could slow down the bearish momentum.
• $2,800 – A strong resistance that must be reclaimed for any meaningful recovery.
• $3,000 – A breakout above this would invalidate the bearish scenario.

Ethereum’s Future – Bearish Breakdown or Reversal?

Ethereum is in a dangerous position, teetering on the edge of a larger collapse. If it fails to hold $2,200, expect a rapid slide toward $2,000 or lower. Given the current macroeconomic uncertainty, institutional disinterest, and rising competition, Ethereum is at serious risk of underperforming Bitcoin and other top crypto assets.

If ETH can reclaim $2,500, there may still be hope for a recovery, but right now, the path of least resistance remains downward. The next 24-48 hours will be crucial, as Ethereum either stabilizes or enters a free fall toward $2,000.

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