- Ethereum‘s ether (ETH) price dropped over 20% within two days, reaching its lowest point since mid-July.
- This decline follows a similar sharp drop on October 10, where ETH lost 25% in value in one day.
- The price fall caused liquidations exceeding $970 million in leveraged ETH derivatives, mostly affecting long positions.
- Major ETH buyer BitMine has exhausted its purchasing power, holding large unrealized losses on nearly 3.4 million ETH.
- Demand from exchange-traded funds (ETFs) and retail interest has weakened significantly, reducing potential buyers at current price levels.
Ethereum’s ether (ETH) faced a sharp decline of over 20% by Tuesday, plunging from just under $4,000 on Monday to nearly $3,000 by Tuesday afternoon in the U.S. This drop marked the lowest price level for ETH since mid-July and followed a severe correction that occurred on October 10, when ETH fell from nearly $4,500 to $3,440 in a single day.
After a slight recovery, ETH was trading just above $3,200 but remained down approximately 9.4% over the previous 24 hours. The sudden price decrease triggered liquidations in ETH derivatives markets, wiping out more than $970 million, primarily hitting traders holding long positions—bets expecting prices to rise—as ETH moved through several support levels. These liquidation figures are reported by CoinGlass data.
Markus Thielen, founder of 10x Research, highlighted that the current breakdown offers little price support below these levels, suggesting further potential declines. The largest known ETH holder, BitMine, has reportedly reached its limit buying ETH, owning about 3.4 million ETH with an estimated cost basis near $3,909. This places the firm at around $2 billion in unrealized losses. Thielen noted, “While there’s no immediate liquidation risk, the real concern is who will be the next incremental buyer of ETH now that BitMine appears to have exhausted its firepower.”
ETF inflows also slowed considerably. After hitting $9.5 billion in July and August corresponding with BitMine’s purchases, ETF demand has diminished, with only $850 million exiting since the October flash crash. Many ETF investors remain underwater at current prices, potentially leading to more selling pressure. Retail interest, measured through Google search trends on Ethereum, has likewise dropped to 13% of its peak.
With past rally drivers fading, 10x Research expects the next significant support for ETH could be in the $2,700–$2,800 range.
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