Ethereum News Today: Ethereum Crashes 2.54% as Traders Face Millions in Losses

Generated by AI AgentCoin World
Tuesday, Jul 22, 2025 5:21 am ET2min read
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ETH
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Aime RobotAime Summary

- Ethereum's 2.54% price crash below $3,700 triggered massive losses for traders like AguilaTrades, who faced $27M losses amid volatile market swings.

- Overbought RSI (96.18) and resistance at $3,775 triggered profit-taking, while $297M ETH ETF inflows revealed shifting investor preferences toward Bitcoin.

- SEC Commissioner Paul Atkins' cautious remarks on ETH's non-security status added uncertainty, deepening the sell-off amid $3.1B daily institutional demand.

- Technical indicators suggest ETH could test $3,650 support next, with potential rebounds to $4,330 if it breaks above $3,775, despite long-term bullish fundamentals.

The recent

Ethereum
price crash, which saw the cryptocurrency drop below $3,700, has sparked widespread concern and speculation among traders and analysts. The sudden decline follows a remarkable 104% rally over the past three months, leaving many to question the underlying causes of this abrupt sell-off.

One of the most notable casualties of this price crash is AguilaTrades, a trader who experienced significant losses due to his aggressive trading strategies. AguilaTrades initially opened a large short position on ETH, anticipating a price drop. However, when the price surged unexpectedly, he quickly switched to a long position, briefly profiting by $3 million after being down $35 million. Unfortunately, the market reversed again, resulting in a staggering $27 million loss. Despite this, AguilaTrades remains holding a substantial short position of 50,000 coins, valued at $186 million, with an unrealized loss of over $7 million.

The Ethereum price crash can be attributed to a combination of market indicators and investor actions. The 7-day Relative Strength Index (RSI) for ETH shot up to 96.18, its most overbought level since May 2025, signaling an imminent price drop. Additionally, ETH encountered strong resistance around $3,775 and touched the Fibonacci 23.6% retracement level at $3,446, triggering profit-taking and a 2.54% drop in just 24 hours. As a result, the coin is currently trading at $3,713.

Another factor contributing to the Ethereum price crash is the shift in investor preferences.

Bitcoin
ETFs have recently experienced outflows of $131 million, while ETH ETFs recorded an inflow of $297 million. This indicates that some investors are selling ETH at its highs and seeking safer alternatives, potentially shifting to Bitcoin. Technical indicators suggest that while the MACD still shows bullish momentum (+88.38), continued selling pressure could push ETH toward the $3,650 support level.

Comments from SEC Commissioner Paul Atkins may have also added to the uncertainty surrounding ETH. Atkins stated that ETH, like Bitcoin, is not considered a security by the SEC, but his cautious tone may have contributed to the sell-off, deepening the Ethereum price crash.

Looking ahead, the Ethereum price prediction presents a mix of bullish and bearish signals. The cryptocurrency continues to experience strong institutional demand, with $3.1 billion in spot ETF volume per day. The upcoming Pectra upgrade promises to enhance the network's speed and efficiency, and whales have been quietly accumulating over $2.57 billion in ETH since July 2023. However, the RSI at 96 indicates an overheated market, and if ETH fails to hold support, further downside could be expected before any recovery begins.

In the short term, ETH may retest support near $3,650. If selling continues, a drop to $3,446 is possible. Conversely, a bounce above $3,775 could open targets up to $4,330. While Ethereum demonstrates long-term resilience, short-term forces are at play, and caution should prevail as strategy becomes increasingly important.