Ethereum News Today: Ethereum's Treasuries Underwater as Retail Traders Buy the Dip

Ethereum (ETH) plunged over 20% in a two-day sell-off, triggering nearly $1 billion in liquidations as leveraged traders faced catastrophic losses. The sharp decline, reminiscent of the October 10 crash, saw ETH fall below $3,400, officially turning negative for 2025 after starting the year near $3,353. Bitcoin (BTC) also slid toward $100,000, exacerbating market stress, according to a BeInCrypto report. Over 303,000 traders were liquidated in 24 hours, with $287 million in long positions erased in a single hour, underscoring the severity of leverage unwinds, CoinDesk reported.

The selloff rippled through the crypto ecosystem, with Ethereum treasury firms like BitMine and Sharplink reporting millions in unrealized losses. These companies, which had aggressively accumulated ETH at higher prices, now face significant mark-to-market declines. BitMine, the largest publicly traded Ethereum treasury, added 82,353 ETH last week—valued at $306 million—but its stock dropped 8% amid broader market weakness, as detailed in a CoinDesk Business article. Sharplink, which paid an average of $3,609 per token, also saw its holdings underwater as prices fell below $3,500, according to Yahoo Finance.

Retail traders, however, remained bullish, buying the dip despite institutional treasuries struggling to maintain asset values. BitMine's chairman, Thomas Lee, emphasized the firm's long-term strategy, noting it now holds 2.8% of Ethereum's total supply and is "more than halfway" toward acquiring 5% (as reported by CoinDesk). Meanwhile, Ethereum's 7% daily plunge marked its steepest drop in months, erasing all year-to-date gains and signaling a shift in market sentiment, as described in the BeInCrypto piece.

Experts warn the correction could deepen. 10x Research's Markus Thielen cautioned ETH could fall to $2,700–$2,800 as ETF flows, retail demand, and digital asset treasury purchases collapse, a risk highlighted by CoinDesk's market coverage. The synchronized selloff also hit high-beta altcoins like Solana and BNB, with liquidations spreading beyond Bitcoin and Ethereum, according to earlier reporting by BeInCrypto.

Despite the turmoil, Ethereum's fundamentals remain robust, with analysts pointing to its active network, strong developer ecosystem, and real-world use cases as long-term tailwinds, noted by the Economic Times. Institutional buying, however, has slowed, with net accumulation now below daily miner issuance—a shift that could prolong the bearish trend, a dynamic explored by Bitcoinist.