Ethereum Crashes Below $3K as Liquidations Spike and Volatility Looms

Core Insights - Ethereum price has fallen below the critical $3,000 level, currently trading around $2,900–$2,950, reflecting a decline of approximately 5–7% over the past 24 hours, with a market cap around $340 billion [1][4] - A significant liquidation event occurred, resulting in nearly $600 million in leveraged crypto positions being wiped out in a single day, contributing to the current volatility [2][4] - The decline in Ethereum's price is part of a broader trend, with the cryptocurrency losing key support levels since November, particularly the $3,590 mark, which was breached with a selling volume 138% above average [4] Market Dynamics - Ethereum is the second-largest cryptocurrency by market cap and serves as the foundation for DeFi, NFTs, and tokenization projects, making its price movements influential across the entire crypto market [3] - The price action is influenced by Bitcoin's pullback and liquidations, which have historically correlated with Ethereum's performance, alongside increasing competition from alternative chains like Solana [5] - Traders are closely monitoring the $2,820–$2,830 zone, which has historically acted as a support level, while the current trading below $3,000 and the 100-hour moving average indicates a bearish trend [5][6] Technical Analysis - Resistance levels are identified at $2,980, $3,050, and $3,080–$3,120, with a decisive move above these levels potentially leading to a recovery towards $3,175–$3,200 [6] - Conversely, failure to reclaim the $2,980 and $3,000 levels with sufficient volume could result in further declines towards $2,920 and possibly $2,880–$2,840, with $2,800 being a critical support level [7]