ETH Market Pullback Accelerates Amid High-Leverage Shakeout
Ethereum slipped to the $3,100 level in early trading, tapping a key demand zone after a sharp market-wide correction triggered large-scale liquidations. More than $880 million in bullish derivatives positions were wiped out within hours, intensifying downward pressure and pushing ETH into a critical technical region that traders have been monitoring for weeks.
Strong Demand Zones Tested
On the daily chart, Ethereum has entered a major support block around $3,050–$3,150, an area that previously acted as the launchpad for multiple rallies. The price reaction within this zone suggests that buyers are attempting to regain control after consecutive days of selling.
A market structure shift was visible as the drop erased short-term higher lows, steering ETH back toward a deeper imbalance region, highlighted by technical analysts as an important liquidity pocket.
“This is a textbook flush of over-leveraged long positions. When funding rates stay elevated for too long, the market eventually forces a reset,” said BitXJournal digital-asset strategist. According to the data, the latest decline largely stemmed from cascading liquidations across perpetual futures markets rather than spot selling.
Key Resistance Levels in Play
If Ethereum stabilizes above the current range, analysts point to $3,450–$3,550 as the next major resistance band, where significant sell-side activity previously emerged. Above that, a broader supply zone between $3,900 and $4,100 remains a pivotal ceiling.
BitXJournal technical researcher noted, “The chart shows clear evidence of rejected highs around the $4K handle, which is now a major barrier. Bulls will need strong momentum to reclaim that level after such a liquidity sweep.”
The retreat in crypto markets coincides with renewed caution ahead of upcoming economic data releases and uncertainty surrounding global risk assets. Traders indicate that these macro cross-currents are amplifying volatility, especially in assets with high leverage exposure.
Ethereum’s ability to hold above the underlined support region will be crucial in determining short-term momentum. A deeper breakdown may expose the next demand area near $2,600–$2,700, while a successful rebound could set the stage for retesting upper supply levels.
The market now waits to see whether this liquidation-driven drop will evolve into a broader trend reversal or simply mark another reset before renewed accumulation.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.