Ethereum Nosedives Below $3,000 as Panic Selling Grips the Market

Ethereum just can't catch a break. The top altcoin nosedived below $3,000, slicing through this key psychological level like butter.

Ethereum price crashed below a key psychological level on Monday, dragging down crypto and tech stocks in a broader market sell-off.

The second-biggest cryptocurrency fell to as low as $2,900 before recovering slightly to trade at $2,926 by 01:08 ET (05:08 GMT). It was last down 7.8% for the day.

The drop saw $100 million in realized losses, according to data from Coinglass.

Ethereum price now faces the next support level at $2,817, which it breached in April and held until July.

If that support cracks, Ethereum price could be headed for even darker days.

However, there was a faint signal of a potential price rebound with the 30-day Market Value to Realized Value (MVRV) dipping below -10%.

Historically, MVRV levels this low have been where ETH found its footing.

But this market doesn’t do optimism well, at least not right now.

Ethereum ETFs saw heavy outflows, worrying investors

The carnage was not limited to direct ETH trading.

U.S. Ethereum exchange-traded funds (ETFs) had a brutal week, recording their largest outflows since July.

Over $186 million poured out in a clear sign that even institutional players are losing their nerve.

BlackRock stood alone, pulling in $124.1 million in net inflows, but that’s just one bright spot in a very dark landscape.

Another layer of misery was added by the Network Realized Profit/Loss metric, which showed investors cashed out $100 million in losses in just 24 hours.

That’s a lot of red for one day.

Yet, oddly enough, the Mean Coin Age metric—tracking how long ETH sits in wallets—showed it has been creeping up.

What does that mean? Some brave souls are buying the dip, hoping for a bounce.

But whether that’s genius or folly will depend on what happens next.

ETH technical patterns completed a rounding top and double-top before the token plummeted below $3,000.

Bitcoin drags down crypto and tech stocks in broader market sell-off

Ethereum was not the only one bleeding here.

Bitcoin, the big brother of crypto, briefly slipped under $90,000 before clawing back to $92,177.79.

That’s a 9% drop for the week. And Bitcoin even touched $89,259 at one point.

The crypto market as a whole was on shaky ground.

Tech stocks linked to crypto were also in trouble.

Coinbase shares dropped 4%. MicroStrategy, which holds a mountain of Bitcoin, fell 3%.

Mining firms weren’t spared either—Mara Holdings slid 6%, and Core Scientific lost 4%.

The sell-off was part of a broader market reaction to stronger-than-expected payroll numbers that pushed bond yields higher.

Add President Donald Trump’s tariff plans into the mix, and the dollar has gained strength, putting even more pressure on risk assets like crypto.

Coming into 2025, crypto enthusiasts were pumped. A pro-crypto Congress and White House sounded like a dream.

That hype overshadowed any concerns about macroeconomic hiccups. But last week’s events have changed the narrative.

Investors are bracing for a rocky first quarter as market turbulence shows no signs of easing. Bitcoin’s stellar 120% gain in 2024 feels like a distant memory now.