Ethereum's Liquidation Wave: $2.5B Forced Sell-Off and the $2,111 Liquidity Target

The crypto market witnessed a severe forced sell-off, with over $2.5 billion in positions liquidated in 24 hours. Ethereum was the hardest hit, accounting for more than $1.15 billion in ETH positions wiped out as the token fell as much as 17%. This concentration of losses highlights how leveraged long positions can amplify price declines during volatile, thin-liquidity periods.

The largest single liquidation was a $222.65 million ether trade on the Hyperliquid exchange, a decentralized derivatives platform that saw the heaviest damage with $1.09 billion in liquidations. This event, driven by a cascade of forced closures, resulted in a sharp price drop that pushed Ethereum to a 10.22% one-day loss. That move marked its largest single-day percentage decline since October 2025, underscoring the immediate and significant impact of concentrated liquidation pressure.

The Liquidity Target: $2,111 Support Zone

The immediate battleground for Ethereum is a tight support zone between $2,111 and $2,227. This range is the first major on-chain floor the price must hold, as it represents a cluster of investor cost bases. A break below this zone would likely trigger the next wave of forced selling, accelerating the decline.

The next significant support level is identified at $2,475, based on the UTXO Realized Price Distribution (URPD) metric. This level is derived from the aggregated cost basis of past ETH purchases, suggesting it could act as a stronger floor if the price falls further. However, the path of least resistance points lower, with the URPD analysis also indicating a potential drop to $1,881 if current selling pressure persists.

This sets up a stark contrast with the token's recent performance. Ethereum has fallen 25% over the past five days and is still down 55.70% from its all-time high of $4,955.90. The current price action, marked by a 10.22% one-day loss, shows the market is in a fragile state where each support level is a critical test.

The Next Flow: Catalysts for More Selling or a Reversal

The immediate catalyst is the resolution of the liquidation cascade. With over 434,945 traders liquidated and long positions accounting for the vast majority of the $2.5 billion loss, the market must now absorb the forced selling. The risk is that further price weakness below the key support zone will trigger another wave of liquidations, accelerating the decline.

Broader market health is a critical influence. Bitcoin's move below $75,000 and its 11% weekly correction set a bearish tone for the entire sector. When the largest cryptocurrency corrects sharply, it often drags altcoins lower. Ethereum's recent 25% drop over five days aligns with this broader downtrend, making a reversal dependent on a stabilization in Bitcoin's price action.

The critical technical level to watch is a break below the $2,111 to $2,227 support zone. A confirmed close below this range would likely trigger the next leg down toward the $1,881 target identified by URPD analysis. For now, the flow remains downward, with each test of the support zone a potential new source of selling pressure.