Ethereum Crash: ETH Coin Plummets 12% as Volatility Grips Crypto Market
Ethereum price plummeted over 12% in 24 hours, hitting $2,400. We analyze the ETH chart and the macro triggers behind this massive crypto sell-off.
The cryptocurrency market is facing a brutal start to the weekend as the $Ethereum price collapsed by more than 12% over the last 24 hours. This sharp decline has pushed $ETH to its lowest levels in months, trailing a broader market rout that saw Bitcoin ($BTC) slip below the psychological $80,000 mark. As liquidations cascade across exchanges, traders are scrambling to identify the floor for the second-largest digital asset.
Why is Ethereum Crashing Today?
Several macroeconomic and market-specific factors have converged to create a "perfect storm" for the Ethereum price. According to reports from Bloomberg, the recent nomination of Kevin Warsh as the new Fed Chair has heightened fears of a "hawkish" monetary policy, leading investors to flee risk-on assets like crypto.
Furthermore, the market is reacting to:
- Massive Liquidations: Over $500 million in long positions were wiped out across the crypto market in 24 hours, with Ethereum accounting for a significant portion of these forced closures.
- U.S. Government Shutdown: A partial government shutdown in the United States has injected fresh uncertainty into global financial markets, as noted by Investing.com.
- ETF Outflows: Institutional interest appears to be cooling, with spot Ethereum ETFs seeing notable outflows as capital rotates into "safe-haven" assets like Treasury bonds.
Ethereum Price Prediction: Key Support Levels
Analyzing the $Ethereum price chart, the technical outlook has turned decidedly bearish in the short term. The 12% drop has breached several key moving averages, signaling that the momentum is firmly with the sellers.
- Immediate Support: The $2,400 level is currently acting as a thin line of defense. If $ETH fails to hold this mark on the daily close, a slide toward $2,250 is highly probable.
- Resistance Zones: On any relief bounce, Ethereum faces stiff resistance at the $2,800 mark, which previously acted as support.
- RSI Oversold: The Relative Strength Index (RSI) is currently dipping into oversold territory, which could hint at a temporary "dead cat bounce," though the macro environment remains heavy.
Market Outlook and Next Steps
The broader crypto news cycle suggests that volatility will remain high through the coming week. Investors are advised to use secure hardware wallets to safeguard their assets during periods of extreme exchange volatility.
If you are looking to "buy the dip," comparing the best crypto exchanges is essential to ensure you are getting the best liquidity and lowest fees during these high-volume events.
