Ethereum Plunges 11% as Liquidation Cascade Drives Investors toward Bitcoin
Ethereum tumbled sharply on the last trading day of the week, losing 11 per cent in 24 hours to trade at $1,900.31, as a violent market-wide deleveraging swept through the cryptocurrency sector. The sell-off, triggered by cascading liquidations and extreme risk-off sentiment, has left ETH underperforming broader market declines and reinforced investor rotation into Bitcoin as a perceived haven.
Analysts said the downturn was sparked by more than $1.28 billion in Bitcoin liquidations over 24 hours, a 209 per cent spike that cascaded across major assets. The forced unwinding of leveraged positions amplified panic selling, pushing the Crypto Fear & Greed Index to “Extreme Fear” at 5, near historic lows.
Ethereum’s slide reflects defensive capital flows away from altcoins during what traders describe as “Bitcoin Season.” Technical breakdowns below key support levels compounded the pressure, with ETH now testing the $1,900 pivot. Market watchers say holding above this level could trigger a relief bounce toward $1,945–$1,978, though sentiment remains fragile.
Despite the steep losses, analysts stressed the decline is not driven by Ethereum-specific fundamentals but by systemic deleveraging across digital assets. ETH dominance is stabilising, and a reclaim of resistance levels would signal renewed strength.
For now, the immediate question is whether the liquidation flush has run its course. Traders are closely watching the $1,900 daily pivot as the battleground for Ethereum’s next move, with recovery prospects hinging on whether buyers step back in to absorb the selling pressure.
