Ethereum (ETH) plummeted below the critical $3,400 level this November 4th. This movement places the asset in negative territory year-to-date for 2025. The panic selling caused crypto liquidations exceed $1.1 billion in just 24 hours. Data from the Coinglass platform confirms the extent of the leveraged losses.
Ethereum’s fall represents its steepest daily decline in months. The asset erased all accumulated gains for the year, after starting 2025 near $3,353. Simultaneously, Bitcoin (BTC) also suffered a sharp correction. The price of BTC fell to an intraday low of $100,721. The market is closely watching the $100,000 psychological support. Over 303,000 traders were liquidated in the last 24 hours. In a single hour, $287 million in long positions were wiped out, highlighting excessive bullish leverage.
This event underscores the extreme volatility and risk of leverage in the current digital economy. The rapid elimination of long positions indicates many investors were caught off guard. The Relative Strength Index (RSI) for both assets is approaching oversold territories. However, this reflects the magnitude of negative investor sentiment. The stability of recent months in the altcoin market appears to be broken.
Are Whales Abandoning Ship While Retailers Buy the Dip?
On the other hand, data from the analytics firm Santiment reveals a behavioral divergence. Large wallets, known as whales and sharks, have been selling. These entities (holding 10 to 10,000 BTC) have sold over 38,366 BTC since October 12th. They control 68.5% of Bitcoin’s total supply, so their sales have a major impact. In contrast, retail traders (holding less than 0.01 BTC) have been accumulating. This group added 415 BTC during the same period, betting on a recovery.
Santiment warns that a sustainable recovery usually occurs when retail investors capitulate. Markets rise when key stakeholders accumulate the coins that small wallets shed. With Bitcoin testing the $100,000 support, the sector is on high alert. A decisive break below this level could accelerate capital outflows and worsen negative sentiment, affecting projections if crypto liquidations exceed $1.1 billion again.
