Ethereum News Today: 303,000 Traders Wiped Out in Ethereum's $1.3B Liquidation Wave

Ethereum's price collapse has triggered a wave of liquidations and raised concerns over market stability, with the cryptocurrency's long position partially liquidated at $3,180. The asset fell below $3,400, turning negative for 2025 and marking its steepest daily drop in months, according to a BeInCrypto report. Over $1.1 billion in crypto liquidations occurred within 24 hours, with Ethereum and Bitcoin accounting for the bulk of the damage. More than 303,000 traders were liquidated, and $287 million in long positions were wiped out in a single hour. The decline erased Ethereum's year-to-date gains and pushed its price to a level last seen a year ago.

The selloff intensified as Ethereum dipped to $3,055, triggering $1.3 billion in leveraged long liquidations and creating a potential short squeeze scenario, according to a Cointelegraph report. Short positions near $4,000 now total over $7 billion, setting the stage for a sharp reversal if the market recovers. On-chain metrics, such as the MVRV 30-day ratio at -10.5%, suggest a possible buy zone as the market approaches key support levels, according to a Coinpedia analysis. However, Ethereum's 30% drop from its August peak of $4,955 has left many investors underwater.

Institutional activity has further exacerbated the downturn. Ethereum ETFs recorded a $135.7 million outflow over four days, with BlackRock alone selling $81.7 million worth of ETH, per Coinpedia. This selling pressure coincided with $1.33 billion in total liquidations, underscoring the fragility of leveraged positions. Meanwhile, major holders like BitMine, which had accumulated $11.11 billion in ETH, appear to have exhausted their buying power, raising questions about future liquidity support, according to a Yahoo Finance report.

Retail sentiment has also deteriorated. Google search trends for Ethereum have plummeted to 13% of their peak, reflecting waning retail interest, the Yahoo Finance report said. The market's technical indicators, including the RSI near oversold levels, suggest a potential bottom around $3,000, Cointelegraph noted. However, analysts warn that without new buyers stepping in, Ethereum could face further declines toward the $2,700–$2,800 range, the Yahoo Finance report added.

The liquidations and price action highlight the risks of leveraged trading in a volatile market. While some see the drop as an opportunity to accumulate discounted ETH, others caution that the lack of institutional support and ETF inflows could prolong the downturn, according to Coinpedia. The coming weeks will likely determine whether Ethereum can stabilize or face another leg down.