Ethereum’s Reality Check: $3K Drop Sparks Wild Short Squeeze! 🚀🤡

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Key Takeaways, or the Great Crypto Circus:

  • ETH plummeted to $3,055, wiping out a cool $1.3 billion in long liquidations – talk about a clean slate! 💥💸

  • Over $7 billion in short bets near $4,000, just waiting for a twist-like a soap opera, but with more money and less morality. 🎭💰

  • A sneaky little bullish divergence whispers that maybe, just maybe, the bottom’s hiding around $3,000 – or so the charts pretend. 📉🤫

On Tuesday, Ether took a nosedive to $3,055, smashing over 13% off its weekly tally. The drop liquefied liquidity from the “equal lows” around $3,400, which had become the playground for leverage-hungry traders. Now, the next “support” party is between $3,000 and $2,800-where the ghosts of supports past still haunt. 👻📉

Over on Binance, a staggering $39 million in longs got liquidated faster than you can say “FOMO,” marking the biggest purge since October 10. Globally, long liquidations topped $1.3 billion-because nothing says “market stability” like a good old-fashioned liquidation party. Total chaos, total reset, all in a day’s work. 🎉🔄

The Year of ETH – A Tale Told by Charts

This year, ETH has danced through the classical four: decline, accumulation, markup, and distribution-your typical crypto soap opera, but with more charts. According to CryptoQuant, it’s as if ETH has been flipping support and resistance levels like a pancake chef. 🥞📊

During the decline, ETH broke below key AVWAPs-support lines drawn from election highs, all-time peaks, and pandemic lows-like that one person who can’t keep their mouth shut at a party. The market was firmly seller-controlled, with ETH doing the downward dance.

Then came a 10-week bullish binge, climbing from $2,000 to $3,000, sneaking past those same AVWAP barriers, cranking up to a yearly high in August. But, alas, the distribution phase showed buyers losing their grip-they got squeezed faster than toothpaste in a tube, as ETH flattened between peak levels and broke lower with a volume storm. 📉💥

Now, ETH is testing those long-term supports again-possibly tired, maybe ready for a breather, or just pretending to be resilient. Stay tuned! ⏳

The Short-Squeeze Will Love This

With over $7 billion in short positions lurking around $4,000, ETH’s recent drop could be the prelude to a fireworks show. If the price bounces near $3,000, it might just unleash a liquidation avalanche-shorts squeezed tighter than your favorite pair of jeans after Thanksgiving. 🍗🧀

Adding a pinch of hope, ETH’s daily chart shows a hidden bullish divergence-while prices make lower lows, the RSI stays level, like a poker face at a high-stakes game. Usually signals a trend flip, or at least a good reason to pretend optimism. 🎲🤞

Crypto wizard Daan Trades chimes in with charm and honesty:

“$ETH has fully rejected from that previous cycle high and is now back in that $2.8K-$4.1K zone. Expect chopping-like a lumberjack without a chainsaw-before the next volatility spike.”

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2025-11-05 22:50