Ethereum (ETH) plunged by more than 7% to approximately $2,223 on Friday, surrendering the gains recorded during Wednesday’s recovery as a broad selloff in US technology and artificial intelligence stocks weighed on cryptocurrency markets.
The second-largest cryptocurrency fell below several important technical indicators, reflecting renewed selling pressure after its short-lived rebound following the US midterm elections.
Ethereum liquidations reach $213 million
The decline triggered $213.3 million in ETH futures liquidations over 24 hours, with bullish traders absorbing most of the losses.
However, onchain exchange data presented a more mixed picture. Net deposits to centralized exchanges were only slightly above 7,000 ETH, suggesting that the sharp price decline was not accompanied by an equally pronounced increase in net exchange inflows.
Meanwhile, Ethereum exchange-traded funds recorded $53 million in net inflows on Wednesday, offering a potential sign of renewed institutional interest before Thursday’s market downturn.
Long liquidations accounted for $181.6 million, representing roughly 85% of the total.
The remaining $31.7 million came from short positions. The imbalance indicates that traders betting on further price gains were disproportionately affected by Thursday’s reversal.
Despite the substantial losses in derivatives markets, Ethereum’s exchange flow data showed comparatively limited net deposits.
Net inflows to centralized cryptocurrency exchanges were only slightly above 7,000 ETH.
The relatively subdued figure may nevertheless indicate that Thursday’s selloff was influenced heavily by derivatives liquidations and broader risk aversion rather than a large wave of net ETH deposits.
US-listed spot Ethereum ETFs recorded $53 million in net inflows on Wednesday, according to SoSoValue.
However, the outflows resumed on Thursday, with $99.97 million withdrawn from the funds yesterday.
Negative net inflows generally indicate that redemptions exceeded creations across the funds during the reporting period.
Ethereum technical analysis: ETH breaks below key moving averages
Ethereum’s daily technical outlook has deteriorated following its decline toward $2,230.
The cryptocurrency has fallen below its 20-day, 50-day, and 100-day Exponential Moving Averages (EMAs), which are clustered between approximately $2,345 and $2,405.
These indicators now represent potential resistance during recovery attempts. The 100-day and 20-day EMAs are positioned around $2,344 and $2,348.
A nearby horizontal resistance level at $2,355 strengthens this area as a potential barrier. The 50-day EMA at approximately $2,405 represents the next important upside hurdle.
Momentum indicators also suggest that sellers have regained control. The daily Relative Strength Index (RSI) has declined to 40, indicating weakening buying momentum.
Meanwhile, the Stochastic oscillator stands near 28, reflecting increased bearish pressure.
Although the Stochastic is approaching the traditionally oversold region below 20, the current reading does not independently confirm that a price recovery is imminent.
For bullish momentum to improve, Ethereum would need to reclaim the nearby moving averages and establish sustained trading above them.
Ethereum’s decline has brought several downside levels into focus. The immediate support area identified on the daily chart is $2,205.
A sustained break below $2,205 could expose the lower support at $2,107. If selling pressure intensifies, Ethereum could face a deeper decline toward $1,972, followed by $1,828.
A daily chart of Ethereum
On the upside, buyers would first need to push ETH back above $2,251. A recovery toward the $2,344–$2,355 resistance cluster would then test whether the recent bearish momentum is beginning to weaken.
Beyond that region, the 50-day EMA at $2,405 represents another significant obstacle. A sustained move above $2,405 could open the door to higher resistance levels at $2,548, $2,637, and $2,782.
The next major upside barrier would emerge near $3,076 if a broader bullish recovery develops.
For now, the combination of lower prices, weak momentum indicators, and overhead moving averages favors a cautious near-term outlook.
AI disclosure: AI tools assisted with research and drafting of this piece. An Invezz editor reviewed the facts, sources and wording before publication. Any opinions or analysis are Invezz’s, not those of an automated system.
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