Ethereum price (ETH USD) has broken below the psychologically key $3,000 level, with Ethereum price action now hovering in a fragile consolidation zone after a sharp sell-off. At the time of writing, ETH is trading around $2,900–$2,950, down roughly 5–7% over 24 hours, while its market cap has slipped toward the mid-$340 billion range.
The move comes as nearly $600 million in leveraged crypto positions were flushed out in a single day, and traders brace for a potential volatility spike driven by weak technicals and mixed institutional flows.
GM FAM
Yesterday we saw $BTC drop below 86K, triggering $600M+ in liquidations. The key driver was derisking ahead of the Bank of Japan interest rate decision.
We’re now in extreme fear, this is where we slow down and analyze.
A few reminders:
– Avoid multiple open positions… https://t.co/dNK0Cw3ULO pic.twitter.com/Ac3ysOjsLe— Kapoor Kshitiz (@kshitizkapoor_) December 16, 2025
Why Did Ethereum Price Suddenly Sink Under $3K?
For newer readers, Ethereum is the second-largest crypto network by market cap and the backbone of DeFi, NFTs, and most tokenization projects; when ETH breaks key price levels, it tends to ripple across the entire market.
According to Economic Times, the Ethereum price fell about -6.9% to roughly $2,904 during a broad liquidation event that wiped out around $592 million in crypto leverage. That slide extended an already fragile structure that began in November, when Ether lost the $3,590 support on 138% above-average selling volume, as reported by CoinDesk.
Short-term traders have been watching the $2,820–$2,830 zone closely, where MVRV deviation bands have repeatedly acted as a kind of on-chain shock absorber.
Since 2016, the best times to accumulate Ethereum $ETH have come when the MVRV Z-Score drops below 0.
It’s now at 0.29. pic.twitter.com/HVyGxE8bQF
— Ali Charts (@alicharts) November 26, 2025
Cointelegraph notes that this band has been a recurring bounce area in recent weeks, suggesting some participants still see value accumulation there even as broader sentiment turns cautious. On the intraday chart, Ethereum price is currently trading below $3,000 and its 100-hour simple moving average, with a clear bearish trend line capping recovery attempts near $3,120.
(Source – TradingView, CoinTelegraph)
This isn’t happening in a vacuum. Bitcoin’s own pullback and liquidations have leaned on Ethereum correlations, a theme we’ve tracked in earlier coverage of BTC wipeouts and Ethereum and institutional demand. At the same time, rising competition from altchains like Solana and growing narratives around rival smart contract ecosystems are redirecting some speculative capital away from ETH during risk-off periods.
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How Could This Ethereum Price Breakdown Shape Volatility and Market Structure?
The immediate question for traders is whether this sub‑$3K range becomes a springboard or a trap. Technically, resistance now clusters around $2,980, $3,050 and then $3,080–$3,120; a decisive move above that band could open a path back toward $3,175–$3,200.
But failure to reclaim $2,980 and $3,000 with volume leaves ETH vulnerable to a slide toward $2,920 and potentially $2,880–$2,840, with $2,800 emerging as a critical downside line in the sand.
Structurally, this drawdown underscores the extent to which Ethereum remains heavily reliant on leveraged futures flows and macroeconomic risk appetite. U.S.-traded ETH ETFs saw approximately $578 million in outflows in August 2025, indicating that some institutions have been tactically reducing their exposure, according to AInvest.
Yet, in parallel, JPMorgan’s MONY tokenized money market fund launching on Ethereum underscores that blue-chip institutions continue building on the network even as price wobbles, as reported by Business Insider.
On the competitive front, liquidity is fragmenting. Some capital has rotated into faster-moving narratives and altcoins, as we’ve discussed in our coverage of altseason and ETH breakout setups and broader Bitcoin and Ethereum price predictions under rising risk.
If ETH fails to defend its current on-chain support zones, the narrative of “Ethereum as the safe large-cap in DeFi” could temporarily weaken, giving more room for rivals to pitch themselves as higher-beta plays.
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What Are the Real Risks for Ethereum Traders Right Now?
The core risk is assuming that a break below $3,000 automatically guarantees a fast snapback. Hourly indicators remain bearish: the MACD on ETH/USD is still gaining momentum in the red, and the RSI sits below 50, reflecting sellers in control rather than capitulation exhaustion.
With liquidations already elevated, a second wave of forced selling could hit if the price loses the $2,920–$2,880 supports.
There is also a narrative risk: Ethereum’s on-chain metrics still show solid usage and institutional experimentation, but price is sending a more cautious message. Recent coverage about “worst ETH bull runs” and competitive threats, like our piece on Ripple targeting Ethereum’s market, can amplify fear when technicals are already weak.
Separating price swings driven by leverage from long-term structural health is crucial for investors deciding whether this is a buying opportunity or a signal to reduce risk.
For now, volatility risk cuts both ways. A clean reclaim and hold above $3,080–$3,120 would suggest the current move was a leverage flush within a larger range, while a daily close below $2,880 would strengthen the case for a deeper correction.
Until the chart makes that choice, disciplined position sizing, clear invalidation levels, and an honest view of your time horizon matter more than trying to call the exact bottom.
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The post Ethereum Crashes Below $3K as Liquidations Spike and Volatility Looms appeared first on 99Bitcoins.
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