ETH dropped by 6.35% in minutes: when a mix of liquidations with high leverage meets macro shocks

What happened: Double Crisis

The Ethereum market experienced a sharp decline in value — over 151 minutes, the coin dropped from a high of around $3447 to a low of $3223, losing 6.35%. The fluctuations were not random: two downward mechanisms were triggered simultaneously. First, numerous leveraged positions were liquidated, triggering a chain reaction of forced closures. Second, the macroeconomic situation in the US — (delay in CPI and employment data publication due to government shutdown) — spread panic among investors, who began to divest from risky assets.

Result: major market participants were forced to close positions after reaching liquidation levels, while small traders hurried to exit the market. The current ETH price is quoted in the range of $3244 — a bounce from the low, but still far from previous highs.

Why did this happen: pressure on two fronts

Macro storm

The delay in the US federal government performing its functions meant one thing: key indicators of economic health were not published. This created a vacuum of uncertainty. Investors did not know whether to expect easing of monetary policy or not, so they chose a safer strategy — exiting risky positions.

Side effects of leverage and liquidations

Institutional market participants actively used credit leverage to increase exposure to ETH. But when the price fell below critical levels, a chain reaction occurred. The large liquidation of one trader caused a drop that triggered another liquidation. This forms a lethal dose effect — each new liquidation worsens the situation, and trading algorithms on automated stations accelerate the decline.

Chronology of the disaster

• 23:10 (November 13): ETH fluctuated in the range of $3441–$3447. Initial long positions were approaching liquidation thresholds. Major players began transferring assets to new addresses.
• 23:10–02:15: Period of mass liquidations. The price soared from the high to $3223, losing over 6%.
• 01:04 (November 14): US government agencies resumed work, but the market did not revive — uncertainty still prevailed.
• 02:15 (November 14): ETH rebounded to $3244, indicating strong selling pressure and resistance at this level.

Technical signs: bearish squeeze

Analysis of the chart on 45-minute intervals of a certain trading platform reveals a depressive picture:

• Momentum indicators: RSI and KDJ are in oversold territory, which in a normal market would suggest a bounce. But MACD continues to narrow, confirming the persistence of a bearish impulse.

• Moving averages in a bearish configuration: The price is well below all key moving averages (MA5, MA10, MA20, MA50, EMA5-EMA120). The EMA20 slope is sharply downward (around -1.75%), indicating a strong downward trend.

• Trading volume: Volumes increased by 36.15%, but the OBV indicator is falling — sellers dominate. Candle formations resemble “three black crows” — a classic bearish signal.

What’s next: three scenarios

Short-term bounce possible but limited RSI and KDJ in oversold zones may trigger technical recovery. But without macroeconomic data updates and clearing uncertainty, this bounce will remain weak and risky.

Medium- and long-term threats persist Until macro-political uncertainty dissipates and leverage risks decrease, the market will remain vulnerable. Each new batch of economic news or additional liquidation could ignite panic selling.

Recommendation: cautious risk management

• Buy on dips only after confirming a technical bounce, set stop-loss 3-5% below entry.
• Monitor resistance/support levels, gradually enter positions only after trend stabilization.
• Do not risk more than you can afford to lose.

Conclusion: ETH is playing on two boards — technical weakness + macro shock + leverage risks. The market awaits US economic data updates and sentiment shifts. Until then, volatility will remain high.