Ethereum under pressure after failed $3.4K hold – What comes next?
Ethereum entered a short-term downtrend after failing to hold above the $3,400 support level, dropping to a local low near $2,800. At the time of writing, ETH was trading at $2,926, extending a week of bearish momentum. This decline resulted in significant unrealized and realized losses across derivatives markets. Notably, a major whale on Hyperliquid, who had built nearly $700 million in leveraged long positions, saw unrealized losses exceed $54 million. Despite the drawdown, the whale's liquidation price remained distant at around $2,082, indicating strong conviction.
Liquidations accelerated significantly, with over $196 million in positions liquidated on December 15th alone, the majority being long positions. On-chain data highlighted individual accounts, such as trader Machi Big Brother, experiencing repeated liquidations with total losses surpassing $22.9 million.
Technical indicators reflected the selling pressure, with the Stochastic RSI deep in oversold territory. If liquidation pressure continues, ETH could retest the $2,700 support level. For a sustainable recovery, bulls would need to decisively reclaim the $3,000 level, with major resistance expected near $3,436. The recent price action underscores how leveraged positions, rather than spot demand, are heavily influencing short-term market movements.
ambcrypto1h ago
