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Ethereum (ETH) experienced a massive price drop, falling below the critical $3,400 level and officially erasing all its gains for the year, marking its steepest daily plunge in months. This synchronized selloff across the crypto market triggered one of the largest deleveraging events of 2025. I. Cause of the Crash and Market Impact The sharp decline in Ethereum's price was driven by a combination of factors: Widespread Deleveraging: The primary cause was the unwinding of overleveraged long positions, as demonstrated by the extreme liquidation volume. Approximately $287 million in long positions were wiped out in a single hour. Total Liquidations: Across the crypto market, over 303,000 traders were liquidated, totaling more than $1.1 billion in forced liquidations within a 24-hour period. Whale Distribution: Market pressure was deepened by large holders (whales and sharks) who offloaded over 38,366 BTC since October 12, signaling major distribution and compounding the negative sentiment for both Bitcoin and Ethereum. II. Ethereum’s New Yearly Low The drop below $3,400 solidified the bearish shift for the second-largest cryptocurrency: New Yearly Low: Ethereum officially broke below $3,400 and turned negative year-to-date (YTD), having started 2025 near $3,353. The price drop was a severe 7% plunge in a single day. Market Status: The decline has reset investor sentiment after months of relative stability, signaling a major turning point toward bearishness in the altcoin market. III. Critical Level to Watch While the article focuses on the breakdown below $3,400, the market is closely watching the broader implications: Next Critical Threshold: The overall market stability hinges on Bitcoin's action, which is now flirting with the psychologically crucial $100,000 support zone. A decisive breach of this level for BTC could accelerate outflows and intensify negative pressure on Ethereum and the rest of the altcoin space.
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🚨 JUST IN: CME’s $XRP and $SOL futures surpass $3 billion in open interest as institutional investors turn to regulated markets for safer crypto exposure.
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$#XRP, $SOL, and $ETH: Cryptocurrencies to Watch Ahead of FOMC Decision As the FOMC meeting looms, $#XRP, $SOL, and $ETH present compelling opportunities for investors. Explore their potential amid market volatility and regulatory developments.$XRP
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