Ethereum (ETH) just hit the brakes—hard. After a promising rally earlier this week, the second-largest cryptocurrency plunged below $1,900 on Friday, sinking as much as 6% to touch an intraday low of $1,870. At press time, ETH had slightly recovered to $1,895, but the sell-off has left traders rattled.
The drop follows a bullish stretch where Ethereum flirted with the $2,100 resistance level, fueled by some big headlines. Trump-backed WLFI announced plans to launch a stablecoin on Ethereum and Binance’s BNB Chain, while Ethereum’s long-anticipated Pectra upgrade finally went live—both events briefly pushed investor sentiment into bullish territory.
But optimism didn’t last long. Former U.S. President Donald Trump’s surprise announcement of sweeping new tariffs triggered a broader risk-off move across global markets. The ripple effects hit crypto hard, and Ethereum took the brunt of it.
Ethereum Leads the Liquidation Bloodbath
As prices tumbled, traders betting on Ethereum’s upside got wiped out. According to data from Coinglass, ETH was the most liquidated crypto asset in the last 24 hours, with $136.21 million in positions flushed from the market. That number even surpassed Bitcoin, which saw $116.56 million in liquidations.
The broader damage was significant:
- XRP: $24.86 million liquidated
- Solana (SOL): $17.28 million liquidated
- Dogecoin (DOGE): $9.45 million liquidated
Altogether, total crypto market liquidations topped $449.89 million. It’s a stark reminder of just how brutal leveraged trading can be during sharp downturns. As stop losses and margin calls kicked in, they added more fuel to the fire, forcing a cascade of automated sell-offs that deepened the correction.
Can Ethereum Hold the Line—or Is More Pain Ahead?
With ETH back below $1,900, the focus now shifts to what comes next. Trading volume is on the rise, but not in the way bulls would hope—it’s mostly driven by sellers. That suggests bearish pressure is still strong, and the risk of further downside is growing.
Key factors to watch:
- Macroeconomic headlines: Trump’s tariff policies have already triggered global market turmoil—and crypto’s not immune.
- Investor sentiment: A recovery will depend on whether traders regain confidence or continue to de-risk.
- Technical support levels: If ETH can’t hold $1,890, the next test comes around $1,850–$1,800—a zone that could decide whether this is a dip or the start of a deeper correction.
Final Thoughts
Ethereum has shown its ability to bounce back from steeper drops before, but this time the landscape is more fragile. Macro tensions, rising liquidations, and nervous investors are creating a volatile mix. Until the dust settles, ETH may face continued choppiness—and traders would be wise to keep a close eye on the charts and headlines alike.