Here’s why ETH is down today

After nearly a month in the green, Ethereum price has come with the market’s second-largest cryptocurrency reversing sharply from its recent highs.

The price of Ethereum (ETH) has seen it slip approximately 5% over the past 24 hours, trading slightly under $4,255 at the time of writing per market data from crypto.news. The day’s decline extends the downturn that commenced over the weekend, marking a 10.6% drop from its this month’s peak above $4,759. 

The drop in Ethereum’s price marks a strong reversal of its multi-day rally just last week, which lifted this month’s gains above 60%. But what’s driving the pullback?

Ethereum price crash explained: profit-taking and longs get rekt

Ethereum’s decline comes amid a wave of liquidations. Over the weekend, billions of dollars in leveraged long positions were wiped out as Ethereum dropped through key support levels, triggering a wave of forced selling.  

In the past 24 hours alone, more than $870 million worth of crypto positions have been liquidated, with ETH alone accounting for roughly $210.6 million according to data from Coinglass. This marks nearly double the liquidations seen in Bitcoin (BTC), underscoring how heavily traders were leveraged on Ethereum’s upside. The cascade of unwinding pushed prices lower fast, amplifying losses.

Another key driver of the price dip is a cooldown in Ethereum exchange-traded funds. After recording their strongest week since launch, the nine U.S.-listed funds closed their latest session in the red.

Data from SoSoValue shows that five issuers recorded heavy outflows, with the largest single withdrawal topping $272 million, pointing to profit-taking among investors who piled in earlier this month. On-chain data shows a similar trend among retail investors, who are also locking in gains and adding to the selling pressure.

But ETH’s losses are not happening in isolation, and mirror the broader weakness in the crypto market. BTC is down about 2.3% on the day, while other major altcoins like Solana (SOL) and XRP (XRP) have dropped around 5%. The broader pullback comes amid shifting macro expectations, particularly ahead of Fed Chair Jerome Powell’s speech this week and growing uncertainty around rate cuts, adding pressure on risk assets across the board.

Why is Ethereum down?

While the long-term outlook for ETH remains strong, near-term signals are mixed. From a technical perspective, ETH is holding just above the 20-day EMA at $4,134. If it fails to hold up this level, it could face further downside, with the next major support sitting at the 50-day EMA around $3,651.

Further breakdown beyond that next support would mark a deeper correction, potentially erasing much of the recent rally’s gains.

At the same time, momentum indicators are showing caution. The Relative Strength Index (RSI) has cooled to 58, down from overbought territory above 70 earlier this month. This suggests buyers are losing steam and the market is shifting toward a more neutral setup.

To regain bullish traction, ETH would need to reclaim $4,500 to signal renewed strength, and a push beyond $4,750 to $4,800 remains the key hurdle before any attempt at fresh highs.