Ethereum News Today: Ethereum Slides Below $2,900, Triggering $395M in Long Liquidations

Ethereum (ETH) has fallen below $2,900, triggering a sharp increase in long liquidation pressure on major centralized exchanges. The price decline has pushed cumulative long liquidation pressure to approximately $395 million, according to recent on-chain data. The drop comes amid a broader slump in the crypto market and a bearish crossover of key moving averages.

Arthur Hayes, former CEO of BitMex, has continued his Ethereum selling spree, moving over $5 million worth of ETH this month. Despite his bearish activity, he still holds a substantial position in Ethereum, valued at over $22 million. His actions have raised concerns among investors, who are watching how these moves might affect the broader market.

At the same time, a major whale has accumulated $1.67 billion in Ethereum since November 4, suggesting that some investors remain bullish. This accumulation contrasts with the broader sell-off and indicates that long-term confidence in the asset has not completely eroded.

Investor Activity and Market Sentiment

The recent Ethereum price drop has sparked a wave of selling across the crypto market. Arthur Hayes' ongoing sales have added to the bearish sentiment, with traders and analysts closely watching whether he will continue to offload his holdings. His recent shift to alternative tokens like Pendle, Ethena, and Ether Fi has raised questions about his strategic outlook for Ethereum's future.

Despite the selling pressure, institutional investors have continued to accumulate Ethereum. Tom Lee's BitMine has purchased over 436,361 ETH in the past 30 days, representing a 3.6% stake in the market capitalization of the asset. Lee has stated his goal is to own 5% of Ethereum and generate annual staking revenues in the hundreds of millions of dollars.

The whale accumulation of $1.67 billion in Ethereum highlights the ongoing divergence in market sentiment. While retail and institutional selling has driven the price down, major investors continue to position themselves for a potential rebound.

Technical Outlook and Market Pressure

Ethereum's price action has formed several bearish patterns, including a death cross and a head-and-shoulders formation on the daily chart. The price has declined from a year-to-date high of $4,960 to the current level of $2,915. A breakdown below $2,622 could signal further downside risk, potentially pushing the price toward the psychological $2,000 level.

The market has also been affected by declining network activity and ETF inflows. Ethereum's network fees have dropped by 57% in the last 30 days, while ETF outflows have continued to mount. The Ethereum network saw $102 million in outflows last week after shedding $643 million in the prior week, indicating that institutional demand for the asset has weakened.

On the other hand, BitMine has started staking its large Ethereum holdings, which could help offset some of the outflows. The firm's staking activity is expected to generate significant returns, potentially balancing the negative flows from ETFs and other market participants.

Broader Crypto Market Trends

The Ethereum price drop has had a ripple effect across the crypto market, with XRP and other major tokens also seeing declines. XRP recently fell 6%, breaking below the $3.00 level amid heavy institutional selling. The market value of XRP dropped by over $18 billion in the past week, raising concerns about whether the $2.75 support level will hold.

The broader crypto market has also seen a wave of IPO activity, with companies like Circle and Bullish going public in 2025. These listings have been seen as a bellwether for the industry's return to public markets, with many investors and analysts watching how these companies perform in the long term.

Ethereum's price trajectory remains closely tied to broader macroeconomic trends and institutional investor activity. While short-term bearish momentum has taken hold, long-term investors and analysts are still watching for signs of a potential rebound.

What This Means for Investors

Investors are now navigating a complex market environment, with conflicting signals from major market participants. On one hand, selling pressure from whales and institutional players has driven the price lower, while on the other, large-scale accumulation by other investors suggests that demand for Ethereum has not disappeared. For those holding Ethereum, the key risk lies in a breakdown below $2,622, which could open the door to further declines. A move toward the $2,000 level would represent a sharp bearish outcome, particularly if the broader crypto market continues its downward trend.

Long-term holders and stakers are also watching how Ethereum's fundamentals evolve. With the recent Fusaka upgrade and the ongoing shift toward staking, the network is undergoing significant structural changes that could influence its long-term value.

Investors are advised to monitor both on-chain activity and macroeconomic indicators as the market moves into the new year. With uncertainty still looming, a cautious approach is warranted, but some investors are already positioning for a potential rebound.