Amid the broader market’s correction yet again today, ETH’s price has taken a major hit and tumbled below $3,000 for the first time since early November.

This has caused a lot of liquidations for over-leveraged bulls, with the number skyrocketing to nearly $200 million only for ETH-related positions.

As the graph above demonstrates, the second-largest cryptocurrency broke above $3,000 after the US elections in early November and didn’t look back for the next two months.

Moreover, the asset peaked at just over $4,100 on December 16, but that was as far as it could go. During the end-of-the-year crash, ETH slumped to $3,100 but managed to defend the $3,000 support.

It bounced off and went on the offensive at the start of 2025. Its yearly peak came on January 7 when it jumped to $3,750. However, that’s when the landscape took a turn for the worse, and ETH, alongside the rest of the market, started to plunge.

The subsequent rejection drove Ethereum’s price to $3,300, where it spent most of the next few days. However, another leg down initiated by the bears today pushed it south even further, and it slipped below $3,000 minutes ago for the first time since early November.

ETH is down by precisely 20% since its January 7 high (or $750 in USD perspective). Today’s drop was particularly painful for over-leveraged traders with long positions, as the total such liquidations has gone up to $185 million, according to CoinGlass.

In fact, ETH’s liquidations have surpassed even those for BTC, whose price tumbled from $96,000 earlier this morning to under $90,000 briefly.

Digital asset investment products saw modest inflows of $48 million last week. While nearly $1 billion flowed in during the early part of the week, outflows of $940 million in the latter half reversed much of the gains. This shift followed the release of new macroeconomic data and the Federal Reserve’s minutes, which signaled a stronger US economy and a more hawkish stance.

According to CoinShares, this could indicate that the post-US election honeymoon has ended, with macroeconomic indicators regaining their influence on asset prices.

Modest Inflows Amid Renewed Macroeconomic Concerns

The latest edition of ‘Digital Asset Fund Flows Weekly Report’ revealed that Bitcoin attracted $214 million in inflows last week, maintaining its lead as the best-performing digital asset with $799 million in inflows year-to-date, despite also seeing the largest outflows later in the week. Inflows to short Bitcoin products stood at $1.8 million.

Ethereum, on the other hand, struggled the most, with $256 million flowing out, which CoinShares attributes to a general tech sector downturn rather than asset-specific concerns. Solana, by contrast, remained strong, pulling in $15 million in new investments.

XRP amassed significant inflows of $41 million last week, driven largely by political and legal developments. The inflows reflect growing optimism as the January 15th SEC appeal deadline approaches.

Multi-asset products followed suit with $21.1 million in inflows. Interestingly, altcoins attracted investments despite lackluster price performance. Leading the way were Aave, Stellar, and Polkadot, which recorded inflows of $2.9 million, $2.7 million, and $1.6 million, respectively. Additionally, Cardano, Litecoin, and Chainlink also saw inflows of $1.2 million, $0.7 million, and $0.4 million, respectively, during the same period.

Switzerland Tops Outflows

In terms of geography, the US stood out with $79 million in inflows, followed by Germany with $52.4 million over the past week. Canada, Brazil, and Australia also observed inflows of $37.1 million, $21.9 million, and $10.3 million, respectively.

Switzerland saw the highest outflow for the week, recording $85.3 million. A similar sentiment was seen across Hong Kong and Sweden as the two countries witnessed outflows of $36.6 million and $33.2 million, respectively.

Ethereum currently rests at a notable support region near $3.2K, with market participants closely observing the potential for a bullish rebound.

The Funding Rates metric offers valuable insights into the sentiment within the perpetual futures markets, helping to gauge the likelihood of a recovery.

Technical Analysis

By Shayan

The Daily Chart

Ethereum has seen consistent declines following its rejection at the $4K resistance level, indicating the dominance of sellers. Most recently, another sharp decline pushed the price toward a substantial support zone, defined by the 100-day moving average of $3.1K.

This dynamic support is critical as demand concentration near this region is expected to curb downward momentum, with a bullish rebound being plausible if buying interest emerges.

Currently, ETH is trapped between the 100-day MA ($3.1K) and the $3.5K resistance level, forming a tight consolidation range. A decisive move in either direction will likely determine the mid-term trend.

The 4-Hour Chart

On the 4-hour timeframe, Ethereum broke down from an ascending wedge pattern, a bearish structure that typically signals further declines. This breakdown triggered a swift sell-off, pushing the price toward a support zone defined by the 0.5-0.618 Fibonacci retracement levels.

This support zone has the potential to stabilize the price and possibly initiate a short-term bullish rebound. However, persistent bearish pressure could result in a break below this line, intensifying the downtrend.

If Ethereum breaches this critical support zone, it may trigger panic selling, further strengthening sellers’ dominance. Conversely, a sustained rebound could pave the way for a recovery toward the $3.5K resistance level.

Onchain Analysis

By Shayan

Examining the chart, the recent market correction has coincided with a significant decline in funding rates. This shift suggests growing bearish sentiment among speculators, with many traders betting on further decreases in ETH’s price.

However, upon reaching the substantial support zone at $3K, the Funding Rates metric has started to show signs of recovery. A notable bullish spike in the metric suggests an influx of buying interest as market participants begin to open long positions in anticipation of a price rebound.

If this recovery in funding rates continues, it could indicate sustained demand and the potential for a bullish rebound from the $3K support. On the other hand, if the current recovery loses momentum or reverses, it would signal a return to bearish sentiment, paving the way for a deeper correction.