The price of Ethereum (ETH) is on track for its worst weekly performance since April 2025. The large-cap altcoin fell more than 11% on Tuesday, hitting a low in the daily range of around $3,060 before recovering to trade around $3,206 at the time of writing.
The Ether price dump affected the broader altcoin market, which posted heavy losses. As such, $2 billion was raised from the leveraged cryptocurrency market, with over $1.63 billion involving long traders.
Why did the Ethereum price drop today?
The macro fear is amplified by the collapse of Bitcoin
The crypto market posted heavy losses on Tuesday amid macroeconomic fears. The US stock market in particular lost more than $700 billion in valuation on Tuesday, while the broader crypto market lost more than $300 billion.
When the Bitcoin price fell below $100,000 for the first time since June, the Ethereum price followed suit. However, the crypto market’s downside was followed by a rapid recovery, fueled by the buy-the-dip story.
Heavy liquidation of long traders: fueling long squeeze
The ETH/USD pair fell on Tuesday largely due to heavy liquidation from long traders. According to market data from MintGlassMore than $655 million was raised from the leveraged ETH market, with more than $576 million involving long traders.
As such, the impact of a long squeeze was exaggerated, resulting in Tuesday’s notable ETH price sell-off.
What’s next?
After the notable sell-off of ETH prices, Kalshi traders believe there is an 82% chance that the ETH price will fall below $3,000 by 2025.
Source: X
However, market analyst Danny Marques believes that the ETH/USD pair is on the verge of a bullish rebound towards a new all-time high in the coming weeks.
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