What happened?
Ethereum plunged from around $4,300 to a low near $3,510 during a broad crypto sell-off, then partially recovered to about $3,830. The crash coincided with nearly $19 billion in liquidations, making it one of the biggest single-day wipeouts this year. Despite the drop, on-chain and technical signs show some accumulation and the possibility of a rebound.
Who does this affect?
Short-term traders and leveraged holders were hit hardest, with many positions liquidated as funding rates turned negative. Long-term ETH investors might view the dip as a buying opportunity if prices stabilize around $3,720–$3,800. Derivatives traders should pay attention too, since rising open interest and crowded shorts could cause big moves either way.
Why does this matter?
The situation matters for market dynamics because negative funding and rising open interest set up a volatile scenario where a small rally could trigger a short squeeze and accelerate gains. Breaking above resistance near $4,055 could flip the short-term trend toward $4,330–$4,390, while a close below $3,720 risks sending ETH back to $3,511. How traders respond now will shape short-term momentum and could influence confidence across the wider crypto market.