Ethereum Erases 2025 Gains Amidst Massive Crypto Liquidations

Ethereum has experienced a significant downturn, turning negative for the year 2025 as its price plummeted below $3,300. This sharp decline has triggered widespread liquidations across the cryptocurrency market, with over $2 billion in positions wiped out in a 24-hour period. The sell-off has erased all of Ethereum's year-to-date gains, marking its steepest drop in months and signaling a shift in market sentiment.

Key Takeaways

• Ethereum's price has fallen below $3,300, erasing its 2025 gains and marking a multi-month low.

• Over $2 billion in cryptocurrency positions were liquidated in 24 hours, with a significant portion being long positions.

• Bitcoin also experienced a sharp decline, falling below the $100,000 mark.

• Social sentiment around Bitcoin and Ethereum has turned increasingly bearish.

• Large holders (whales) have been selling, while smaller retail investors are accumulating.

Market Turmoil and Liquidations

The cryptocurrency market witnessed a dramatic sell-off on November 4th, with Ethereum dropping to its lowest point in four months. This price action led to massive liquidations, totaling over $2 billion across major exchanges. A substantial portion of these liquidations, approximately $1.63 billion, were long positions, indicating that overleveraged bullish bets were heavily punished as prices broke key support levels. Ethereum alone accounted for over $655 million in liquidations, surpassing Bitcoin's $614 million.

Bitcoin's Decline and Support Levels

Bitcoin also experienced a significant drop, falling below the psychologically crucial $100,000 support zone for the first time in six months. The leading cryptocurrency briefly touched lows around $99,000 before attempting a recovery. Analysts are closely watching if Bitcoin can maintain its position above $100,000-$105,000, as a sustained breach could lead to further market declines.

Shifting Market Sentiment and Whale Activity

Social media sentiment surrounding both Bitcoin and Ethereum has collapsed, turning increasingly bearish. Data from Santiment indicates that bearish comments have intensified, with Ethereum experiencing its second-lowest positive/negative sentiment ratio in six months. Meanwhile, on-chain analytics reveal that large holders, often referred to as whales, have been offloading significant amounts of Bitcoin since mid-October. Conversely, smaller retail investors, or "shrimps," have been accumulating during this period. Analysts suggest that a sustained market rebound will likely only occur when whales shift from distribution to accumulation.

Broader Economic Factors

The crypto market's downturn occurred alongside a decline in major stock market indices, with the Nasdaq and S&P 500 also finishing the day lower. Factors contributing to the broader market uncertainty include ongoing trade conflicts, liquidity concerns, and pessimism surrounding potential interest rate adjustments. The upcoming jobs report is also being closely watched by traders bracing for potential volatility.

Sources

• Ethereum Turns Negative for 2025 as Crypto Liquidations Exceed $1.1 Billion, Yahoo Finance.

• Crypto Liquidations Top $2 Billion as Bitcoin Continues Slide, Ethereum Hits 4-Month Low, Yahoo Finance.

• Ethereum Plunges Below $3,300, Coinpaper.

• Bitcoin & Ethereum Social Sentiment Collapses, But XRP Just Sees Disinterest — TradingView News, TradingView.

• Bitcoin, Ethereum and Dogecoin Plunge as Crypto Liquidations Top $1.1 Billion, Yahoo Finance.