Quick overview

Live ETH/USD Chart

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Ethereum (ETH) recently experienced a severe flash crash, causing its price to plummet toward the $4,000 support level before it began to stabilize. This sharp decline resulted in over $1 billion in liquidated long positions across the cryptocurrency market within a single hour. Below is a summary of the key points, the reasons behind the crash, and what to watch for next.

 

ETH fell by as much as 7% by mid-morning UTC, breaking below the $4,400 mark and briefly dropping to between $4,000 and $4,050. A string of stop-loss orders that were triggered made the sell-off worse.

Ethereum’s price has been consolidating and has yet to breach the critical $5,000 barrier. Following a strong rally beginning in April, which allowed the asset to surpass several resistance levels, this consolidation phase is expected to continue unless the market can overcome the $4,800 level in the coming weeks.

 

Funding rates indicate the aggressiveness of buyers and sellers in the futures market; higher funding rates suggest that buyers are taking more aggressive positions. The chart reveals that the 7-day moving average of funding rates has remained positive for an extended period.

However, these figures do not compare to the highs recorded in March 2024 and late 2024, when the price also reached all-time highs. With the futures market not yet at a significant level, this could indicate that there is still potential for the market to expand further.