Crypto Market Sees $360M Liquidations in 4 Hours as ETH Price Tumbled Below $3,400

The cryptocurrency market witnessed one of its heaviest liquidation waves this quarter, with over $362 million in leveraged positions wiped out within four hours on Wednesday. This event was triggered by a sharp selloff in Ethereum (ETH), which slipped below $3,400 for the first time in November.

The macroeconomic narrative continues to keep risk assets in check. SoftBank’s decision to sell part of its stake in Nvidia initially rattled global tech and adjacent crypto markets. Adding to this, the looming U.S. government shutdown vote on Wednesday created further uncertainty, prompting traders to unwind positions, which pushed derivatives markets into cascading liquidations.

According to Coinglass data, over 160,000 traders were liquidated, resulting in over $613.16 million in wiped positions within 24 hours. Long traders accounted for $503.23 million, while shorts contributed roughly $110 million. The largest single liquidation occurred on Hyperliquid’s POPCAT-USD pair, worth $21.29 million. Additionally, the one-hour liquidation chart recorded $9.09 million in rekt positions, divided between $3.24 million longs and $5.85 million shorts, illustrating extreme intraday volatility.

Bitcoin and Solana futures were not spared, experiencing sharp drawdowns. Open interest dropped by nearly 8% across major exchanges as traders scaled back risk exposure. This widespread reduction in risk positions underscores the market's heightened sensitivity to macroeconomic events and growing volatility in the cryptocurrency space.

Ethereum’s 12-hour chart shows ETH trading near $3,448, down 2.86%, following a rejection at $3,587. Prices fell below the 20-day simple moving average (SMA) of $3,463, a key short-term equilibrium line. The Bollinger Bands indicate widening volatility, with an upper band at $3,701 and a lower boundary at $3,225. A close below $3,225 could trigger further selling toward $3,100, but a reclaim above $3,463 might signal a restoration of short-term bullish control.

The MACD remains in bearish territory, with a -73.12 signal gap, suggesting declining momentum despite minor histogram recovery. Bulls need to defend the $3,300–$3,350 support range to avoid a deeper drop toward the psychological $3,000 level. Conversely, a rebound above $3,550 could reestablish upward momentum, targeting resistance near $3,700. For now, Ethereum's price outlook remains neutral-to-bearish, given the ongoing liquidation risks and overarching macroeconomic uncertainties.

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