Ethereum (ETH) Liquidation Frenzy Signals Deeper Crypto Shakeout Ahead

In the last 36 hours, the crypto market experienced its most intense deleveraging since 2021, as nearly $3 billion was liquidated across major ￰0￱ (ETH) led the sell-off after recording roughly $900 million in liquidations, and even surpassed Bitcoin for the first time in ￰1￱ Suffers Liquidation Shock In its latest update, data analytics platform Alphractal pointed to the 24-hour Liquidations-to-Open Interest ratio as a crucial indicator, highlighting which assets are facing the heaviest ￰2￱ found that top-tier tokens like Bitcoin (BTC) and Ethereum have not yet seen a full-scale deleveraging. However, mid- to lower-cap altcoins, ranging from the Top 10 to the Top 700, have taken the hardest hit, wiping out leveraged positions and driving market volatility ￰3￱ eyes are on whether Ethereum’s current losses mark the start of broader liquidations, as Bitcoin and other large-cap coins may still face further ￰4￱ CEO Joao Wedson also revealed that despite the bearishness, especially in ETH, he believes the recent wave of long liquidations could act as a catalyst to re-ignite market momentum.

“ETH has been following the reaccumulation phase I warned about back in ￰5￱ went short exactly at the last ATH, and the position is still open. I still believe that the latest long liquidations will re-ignite the market for a bullish October – even if many traders are still unsure.” On the institutional side of things, Ethereum attracted a strong $772 million inflow last ￰6￱ activity could provide crucial support for its price as investor sentiment ￰7￱ surge came alongside the US Federal Reserve’s long-anticipated rate cut, which initially sparked caution but later fueled renewed confidence in digital ￰8￱ Now, $10,000 Later Meanwhile, crypto analyst Ted Pillows predicted that Ethereum will eventually climb above $10,000 this cycle, but not before a significant correction plays ￰9￱ his latest update on X, Pillows warned that the market is currently in the midst of that pullback and sees ETH potentially dropping to the $3,600-$3,800 range before finding a ￰10￱ to the analyst, this dip would set the stage for a strong reversal and a push toward a new all-time high once the correction is complete.