ETH just took a big hit, dropping to $3,048 from its recent $3,464 high. Let's break down what's happening and where we might be headed.
The Quick Take
Network activity is down across the board. More ETH is moving to exchanges (usually not great news), and we're seeing fewer active users. The big red flag? A massive $100M in long positions just got liquidated.
Key Numbers That Matter
- Active addresses dropped from 350K to 323K
- Daily transactions fell from 1.2M to 1.09M
- Burned fees crashed from 1,200 ETH/day to just 250 ETH/day
Exchange Activity (Warning Signs)
Exchange inflows are up, suggesting more sellers than buyers. The Korean markets, usually a strong source of buying pressure, have gone quiet. Institutional interest? Still looking weak with negative premiums.
Important Price Levels
Support: $2,950-$3,000
- Critical zone to watch
- Break below could trigger panic selling
Resistance: $3,300-$3,350
- Need to break this to turn bullish
- Previously was support, now acting as ceiling
Worst Case Scenario
If we lose $2,950, here's what to watch:
- First stop: $2,800-$2,850 (likely bounce zone)
- If that fails: $2,500-$2,600 (absolute floor unless something catastrophic happens)
Why This Matters
High leverage in the market means more drops could trigger a cascade of forced selling. With reduced network activity and bearish signals from multiple metrics, ETH needs to hold $3,000 to avoid deeper trouble.
The silver lining? New smart contracts are up, showing developers haven't lost faith in the network despite the price action.
