Ethereum's price tumbled more than 7% on Friday, sliding to approximately $2,223 and wiping out the gains from Wednesday's post-election rebound. The selloff, driven by a broad decline in US technology and artificial intelligence stocks, pushed the second-largest cryptocurrency below several key technical levels.
The sharp move triggered $213.3 million in ETH futures liquidations over the past 24 hours, with long traders bearing the brunt of the losses. Long liquidations accounted for $181.6 million, roughly 85% of the total, while short positions contributed $31.7 million. This imbalance suggests that traders betting on further upside were disproportionately affected by Thursday's reversal.
Despite the heavy derivatives activity, on-chain exchange data painted a more nuanced picture. Net deposits to centralized exchanges were only slightly above 7,000 ETH, indicating that the price decline was not accompanied by a massive wave of net inflows. This suggests the selloff was driven more by derivatives liquidations and broader risk aversion than by a rush to sell on exchanges.
In the ETF arena, US-listed spot Ethereum funds recorded $53 million in net inflows on Wednesday, according to SoSoValue, hinting at renewed institutional interest. However, that momentum reversed on Thursday, with $99.97 million in net outflows as redemptions exceeded creations.
Technical Outlook Turns Bearish
Ethereum's daily chart has deteriorated after the drop toward $2,230. The cryptocurrency has fallen below its 20-day, 50-day, and 100-day exponential moving averages (EMAs), which are clustered between roughly $2,345 and $2,405. These levels now serve as potential resistance during any recovery attempts.
The 100-day and 20-day EMAs sit near $2,344 and $2,348, respectively, with a horizontal resistance at $2,355 reinforcing that zone. The 50-day EMA at approximately $2,405 represents the next significant upside hurdle.
Momentum indicators also point to seller control. The daily Relative Strength Index (RSI) has declined to 40, indicating weakening buying momentum, while the Stochastic oscillator stands near 28, reflecting increased bearish pressure. Although the Stochastic is approaching the oversold region below 20, that alone does not confirm an imminent price recovery.
Key Levels to Watch
On the downside, the immediate support area is identified at $2,205. A sustained break below that level could expose the next support at $2,107. If selling pressure intensifies, Ethereum may face a deeper decline toward $1,972, followed by $1,828.
For bulls to regain control, Ethereum would need to reclaim the nearby moving averages and establish sustained trading above them. The first upside target is $2,251, with a move toward the $2,344–$2,355 resistance cluster testing whether bearish momentum is easing. Beyond that, the 50-day EMA at $2,405 is a major obstacle, and a sustained move above it could open the door to $2,548, $2,637, and $2,782. A broader bullish recovery would face its next major barrier near $3,076.
Given the combination of lower prices, weak momentum, and overhead moving averages, the near-term outlook for Ethereum remains cautious. Traders will be watching whether the $2,205 support holds or gives way to further downside.
This article is for informational purposes only and does not constitute financial advice.
