Ethereum’s price has experienced a significant decline in recent hours, following a robust correction across the cryptocurrency market, which saw Bitcoin’s price fall toward $65,000. Notably, various on-chain indicators for Ethereum remain bearish, including a sharp decline in the ETHBTC ratio. This trend is strengthening sell positions and trapping aggressive buyers at each support level.

Market Liquidation Nears $900 Million

Major cryptocurrencies, including Bitcoin and Ethereum, have experienced significant declines, with $400 million in positions being liquidated. Bitcoin’s price touched the $65K level, marking a more than 3% decrease in the last 1 hour and a noticeable fall from its March peak of $73,737.

Ethereum has suffered even more, dropping 4% in the past 1 hour to a low price of $3,100. The overall cryptocurrency market is facing a decline, resulting in the liquidation of positions by traders who had anticipated price increases. According to CoinGlass, around $900 million worth of total positions were liquidated in just the last 24 hours.

Interestingly, Ethereum is lagging behind Bitcoin, with the ETHBTC ratio experiencing a significant downturn. ETHBTC ratio recently touched the low of 0.0473, last seen in 2021. This trend is driven by several factors: Bitcoin reaching new all-time high prices, over $10 billion flowing into the spot BTC ETF, and a surge in trading volume of Bitcoin Ordinals, which is nearing $3 billion. Additionally, the anticipation of Bitcoin’s upcoming supply halving—an event historically linked to previous cryptocurrency bull runs—is further boosting Bitcoin’s momentum.

According to on-chain data, the Netflow metric is hovering around the positive zone, suggesting large selloff by whales during the recent decline. However, analysts believe that this decline was much needed before the halving event to create an equilibrium. Following this decline, Ethereum and Bitcoin prices quickly rebounded above their immediate resistance levels.

What’s Next For ETH Price?

Ether has been hovering between $3,100 and $3,700 in recent days, reflecting a stable equilibrium between buyers and sellers. However, the recent drop toward $3,100 created concerns among traders. As of writing, ETH price trades at $3,220, declining over 8.3% in the last 24 hours.

If the price drops to the solid support at $3K, it’s expected that buyers will re-enter the market. A strong rebound from this level would indicate that Ether might continue to trade within this range for some time. However, after dropping to the $3.1K level, buyers triggered strong accumulation and sent the ETH price above immediate Fib level of $3200.

However, if the price breaks down below $3K, it could be the beginning of a more significant downturn, potentially reaching as low as $2,700. For the bulls to regain control, they need to push the price above $3,650. Currently, the long/short ratio for ETH price is trading at 0.6804, with 59% positions expecting an immediate decline in the price chart.

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