Ethereum Price Crash Has Shocked Investors, Despite Positive Trend in the Past Few Days

Ethereum seemed to be on a positive trend the past few days, recovering from the significant February downturn. However, today the Ethereum price crash has shocked investors.

The U.S. recession fears are affecting riskier markets like digital assets. As several economic indicators have shown, overall investor confidence is declining. Experts are also concerned about the current geopolitical situation, especially the potential for a trade war and rising inflation.

An interesting term, “Trumpcession,” has emerged, tying together anxieties about the former U.S. president's policies and the broader economic outlook. This fear of a recession has caused massive problems for Ethereum, as it was already grappling with several issues related to its Layer-1 ecosystem.

Crypto Long Liquidations Exacerbate Market Crash

The market crash since yesterday has seen huge liquidations. Over the past 24 hours, around $175 million worth of cryptocurrency was liquidated across various tokens. Among them, Ethereum saw nearly $30 million in liquidations. This wave of market exits was largely driven by long-term holders closing their positions due to price declines.

As Chainalysis data reveals, the majority of liquidations were on Binance, with a total of $96.7 million. This was closely followed by OKX, rendering a staggering $60.4 million in liquidations. The third largest platform was Bitget, not to be outdone with $12.3 million.

This pattern is no surprise, given Binance's dominance in derivatives trading. It is the preferred exchange for many traders seeking leveraged positions. However, with market crashes often leading to rapid margin calls and subsequent liquidations, Binance naturally takes the lead.

This time, the market crash was largely driven by a broader market downturn, which in turn led to a series of technical sell-offs. As such, most of the liquidated tokens were cryptocurrency. Among them, Ethereum was hit hardest, with nearly $30 million in liquidations. This was followed by Bitcoin, which saw around $16 million in liquidations.

Liquidation Risks Loom for ETH-Backed Crypto Loans

Adding to Ethereum’s woes, many crypto loans backed by Ethereum are facing liquidation risks. As the Ethereum price continues to abandon critical support levels, borrowers may be forced to sell off their positions. A close look at the data from crypto lending platforms reveals that a substantial portion of crypto loans are being liquidated.

This issue has affected not only retail investors but also raises questions about the stability of these crypto-lending platforms. As crypto lending platforms gain popularity, they are offering innovative products and services to meet the diverse needs of crypto traders.

These platforms typically allow users to borrow cryptocurrencies against their cryptocurrency holdings. In essence, they function like traditional lending institutions, facilitating the borrowing and lending of crypto assets.

Ethereum News Today: A Dumping Ground For Bad News

Today has seen a downturn in the crypto market, with most tokens now in a bearish territory. The crypto market cap has slid by 1.58% in the past hour, now at $1.49 trillion.

The crypto lending platforms are also facing difficulties as the market slides further into bearish territory. This follows a broader market downturn that saw crypto lose $1 trillion in value over the past five months.

The market crash since yesterday has seen huge liquidations. Over the past 24 hours, around $175 million worth of cryptocurrency was liquidated across various tokens. Among them, Ethereum saw nearly $30 million in liquidations. This wave of market exits was largely driven by long-term holders closing their positions due to price declines.

And as the market keeps sliding further, these long-term holders may be forced to close their positions due to market pressure. This has exacerbated the downward pressure on ETH’s value.

Can ETH Price Recover Today?

The chart reveals that ETH has had a terrible day. The Ethereum price started at $2,000 yesterday, with an uptrend taking it to $2,034 within four hours. However, strong resistance at $2,035 was seen. ETH found strong support at $2,018, and it looked like ETH was set for success.

However, ETH’s final attempt at the resistance came at 10:00 AM UTC. Failure to skip across led to a downfall, as Ethereum again fell into sub-$2,000 levels. However, it was able to find support close by at $1,990. Ethereum soon recovered, but failed to go beyond $2,026.

Chart 1: analyzed by raodevansh18, published on TradingView, March 28, 2025

Ethereum slumped and entered a trading range, hoping for an upward breakout. But the upward movement kept getting throttled, as the resistance trendline kept falling. A bearish triangle formed, and a price decline looked imminent.

However, investors were left shocked by the huge downward spike that appeared afterward, at 04:15 AM UTC. The ETH price plunged, going