Ethereum faces $185M in liquidations as price drops

Ethereum's (CRYPTO:ETH) recent price decline has led to significant liquidations for over-leveraged traders, totaling approximately $185 million.

As the broader cryptocurrency market experiences a downturn, ETH has fallen below $3,000 for the first time since early November, marking a notable shift in its performance.

The cryptocurrency had previously surged above $3,000 following the US elections and reached a peak of over $4,100 in mid-December.

However, the market faced a correction at the end of the year, causing ETH to drop to $3,100 but manage to hold the $3,000 support level.

The situation worsened in early January 2025 when ETH peaked at $3,750 before facing a sharp decline.

The latest drop has pushed Ethereum’s price down by 20% from its January 7 high, equating to a loss of $750.

This decline has particularly impacted long-position traders, as liquidations have surged to nearly $200 million for ETH positions alone.

CoinGlass reported that these liquidations have even outpaced those for Bitcoin (CRYPTO:BTC), which also saw a significant price drop.

The current market sentiment is bearish, and traders are closely monitoring Ethereum's performance as it navigates this challenging period.

"The recent price action shows how quickly market conditions can change and the risks associated with high leverage," noted an analyst.

As Ethereum continues to grapple with these challenges, traders remain cautious about potential further declines in the asset's value.

At the time of reporting, the Ethereum (ETH) price was $3,165.83.