Ethereum (ETH) price is en route to recording its worst weekly performance since April 2025. The large-cap altcoin dropped over 11% on Tuesday to reach a daily range low of about $3,060 before rebounding to trade around $3,206 at press time.
The Ether price dump impacted the wider altcoin market, which registered heavy losses. As such, $2 billion was rekt from the leveraged crypto market, with over $1.63 billion involving long traders.
Why is the Ethereum Price Down Today?
Macro fears amplified by Bitcoin breakdown
The crypto market recorded heavy losses on Tuesday amid macroeconomic fears. Notably, the U.S. stock market lost over $700 billion in valuation on Tuesday, while the wider crypto market shed over $300 billion.
As the Bitcoin price dropped below $100k for the first time since June, the Ethereum price followed in tandem. However, the crypto market drawback was followed by a quick recovery, fueled by the buy-the-dip narrative.
Heavy liquidation of long traders: fueling long squeeze
The ETH/USD pair dropped on Tuesday largely due to heavy liquidation of long traders. According to market data from CoinGlass, more than $655 million was rekt from the leveraged ETH market, with over $576 million involving long traders.
As such, the impact of a long squeeze was exaggerated, resulting in the notable ETH price selloff on Tuesday.
What’s Next?
Following the notable ETH price selloff, Kalshi traders believe that there is an 82% chance that the ETH price will drop below $3k in 2025.
Source: X
However, market analyst Danny Marques believes that the ETH/USD pair is on the cusp of a bullish rebound towards a new all-time high in the coming weeks.