Amid the current market volatility, Ethereum (ETH), the second-largest cryptocurrency in terms of market capitalization, has faced a significant downturn, resulting in the largest liquidation event of 2025. Today, on January 13, 2025, ETH has experienced a price drop of more than 7.5% over the past 24 hours, making it the biggest loser among the top 10 cryptocurrencies.
According to Coinglass, an on-chain analytics firm, traders have lost a staggering $171.50 million due to the massive price decline. The majority of these liquidations occurred in the last four hours, with traders losing nearly $100 million. Long position holders accounted for $85 million of the liquidations, while short sellers saw $14 million worth of positions being liquidated.
The market-wide liquidation occurred as ETH failed to maintain the crucial support level at $3,200 and breached the support provided by the 200 Exponential Moving Average (EMA) on the daily timeframe.
In terms of price prediction, technical analysts suggest that ETH is now in a downtrend and could potentially reach the $2,850 level. The breakdown of key support levels and the prevailing market sentiment are cited as reasons for this bearish outlook.
Earlier in January, ETH broke down from a bearish head and shoulders pattern and entered a consolidation phase. Despite bullish hopes for further upside momentum, the bearish sentiment prevailing in the market today has caused ETH to drop significantly.
As of now, ETH is trading around $3,020, experiencing a 7% decline in the past 24 hours. However, trading volume has surged by 170%, indicating increased participation from traders and investors compared to the previous day.
In addition to ETH, the entire cryptocurrency market has been undergoing a downturn, with long position holders bearing the brunt of the losses. Overall, the crypto market has witnessed a massive $700 million in liquidations, with $593 million coming from long positions and $108 million from short positions.