Ethereum Breaks Below $3,000: $70M in BTC and ETH Liquidations Rock Crypto Market
- Keyword Financial
- Nov 17
- 7 min read
Introduction
Bitcoin and Ethereum saw a sharp wave of volatility on 17 November, with combined crypto liquidations surpassing $70 million as leveraged traders were flushed out of the market. According to Coinalyze data, Ethereum led the move with $50.7 million in liquidations, while Bitcoin recorded about $18.2 million. The selloff came as both BTC and ETH extended their ongoing corrections, testing critical support levels and reinforcing bearish short‑term sentiment in the broader crypto market.
Ethereum price action turned particularly fragile as ETH briefly broke below the key psychological and technical level of $3,000 before recovering to around $3,019, down roughly 2.36% on the day. The breakdown came after a 37% decline from its October peak near $4,800, leaving Ethereum in deeply oversold territory with an RSI around 31. Volume profile data shows heavy resistance between $4,000 and $4,400 and immediate resistance around $3,800, suggesting any ETH price recovery will face substantial selling pressure, even as traders eye potential bounce zones near $3,000 and $2,800.
Bitcoin price traded near $92,071, about 27% below its October high around $127,500, with its RSI at an even more oversold 28.77. Volume analysis highlights thick resistance between $110,000 and $112,000, and prior support at $104,000 has now flipped to resistance, making a reclaim of $100,000 crucial for improving BTC sentiment. The synchronized BTC and ETH crash points to broader crypto market deleveraging rather than coin-specific weakness, as long positions bore the brunt of the liquidation cascade. While oversold indicators hint at the possibility of short‑term relief rallies in Bitcoin and Ethereum, dense overhead resistance and lingering selling pressure mean traders remain cautious about a sustained trend reversal.
Background
On 17 November, a sharp bout of volatility in the crypto derivatives market triggered more than $70 million in combined Bitcoin and Ethereum liquidations, underscoring how quickly leverage can unwind in a risk‑on environment. According to data cited from Coinalyze, Ethereum (ETH) accounted for roughly $50.7 million of these liquidations, while Bitcoin (BTC) saw about $18.2 million. The move came as ETH briefly broke below the $3,000 level and BTC retested support near $92,000, extending the broader crypto correction that began after October’s highs.
For market participants across trading, DeFi, and fintech, this episode is a reminder of how tightly spot prices, derivatives positioning, and market structure are intertwined. While headline numbers focus on “$70M liquidated,” the underlying story is one of overextended long positions, oversold technical conditions, and heavy supply zones overhead that are shaping the near‑term path for BTC and ETH. Understanding how these pieces fit together is key to interpreting risk and opportunity in the current cycle.
Below, we unpack what happened, why liquidations spike in events like this, and what the charts are signaling for Bitcoin and Ethereum in the short term.
What Are Crypto Liquidations – And Why Do They Matter?
In derivatives markets, traders often use leverage – borrowing funds to increase exposure relative to their capital. On perpetual futures and margin platforms, positions are governed by maintenance margin requirements. If the market moves against a trader and their equity falls below a threshold, the position is liquidated: the exchange automatically closes it to prevent further loss.
A few key concepts behind events like the recent Bitcoin and Ethereum liquidations:
Long vs. short liquidations
Long liquidations occur when prices fall and leveraged buyers are forced out.
Short liquidations occur when prices rise and leveraged sellers are squeezed. In this episode, longs bore the brunt of the damage, consistent with a sharp downside move in BTC and ETH.
Liquidation cascades
When price crosses certain levels, large clusters of liquidations can trigger forced market sells, which push prices lower still, knocking out more positions. This feedback loop is often called a liquidation cascade and is a common driver of exaggerated intraday volatility in crypto.
Why this matters for DeFi and fintech
Even if you’re not trading on leverage, liquidations can spill over into:
On‑chain lending protocols (e.g., collateral thresholds and health factors)
Automated market makers (AMMs) via sudden price slippage
Risk models and pricing engines used by fintech and institutional platforms
Derivatives analytics firms such as Coinalyze, Coinglass, and others track these events in real time, giving a window into market sentiment and systemic leverage.
Ethereum: Break Below $3,000 Triggers Majority of Liquidations
On 17 November, Ethereum briefly traded below $3,000, breaking a psychologically and technically important support zone before stabilizing near $3,019, down about 2.36% on the day. That dip was enough to ignite roughly $50.7 million in ETH liquidations, the bulk of the day’s total.
Key ETH price and technical signals
Drawdown from October peak
ETH has pulled back about 37% from its October high near $4,800, reflecting sustained selling pressure throughout November.
Volume profile and resistance zones
Volume profile analysis – which maps where the largest volumes traded at different price levels – shows that the heaviest trading activity occurred between $4,000 and $4,400.
This creates a significant supply wall: many traders are now “trapped” longs from higher levels and may look to exit on rallies, reinforcing resistance in that band.
Immediate support and resistance
Short‑term support is centered around the $3,000 region, where the recent breakdown and bounce occurred.
Immediate resistance is seen near $3,800, marking the next major hurdle for any ETH price recovery attempt.
RSI: deeply oversold conditions
The Relative Strength Index (RSI) for ETH sits around 31.09, which is close to the traditional “oversold” threshold of 30.
RSI is a momentum indicator that oscillates between 0 and 100.
Readings below 30 often signal that selling has been unusually intense and that a short‑term bounce or consolidation may follow.
However, oversold does not guarantee an immediate reversal; markets can remain oversold in persistent downtrends.
For Ethereum, the combination of oversold momentum, heavy supply between $4,000–$4,400, and a fragile $3,000 support zone sets the stage for choppy, headline‑driven price action. From a risk standpoint, the key question is whether $3,000–$2,800 can hold as a medium‑term base or if further deleveraging drags ETH lower.
Bitcoin: Retest of $92,000 Amid Oversold Signals
While Ethereum absorbed most of the liquidations, Bitcoin also saw around $18.2 million in forced position closures as it traded near $92,071, down roughly 2.24% on the day. The flagship cryptocurrency has now dropped about 27% from its October peak around $127,500.
BTC’s technical landscape
Support and resistance flips
Volume profile analysis highlights significant resistance between $110,000 and $112,000, where substantial historical trading activity took place. This suggests a high‑supply zone that could cap upside in the near term. Additionally, the $104,000 level, which previously acted as a key support, has now flipped to resistance, a common pattern in technical analysis when a level is decisively broken.
RSI: extreme oversold reading
RSI has fallen to about 28.77, indicating extreme oversold conditions for this leg of the correction. As with ETH, this raises the probability of short‑term relief rallies, but does not alone confirm a trend reversal.
Key psychological thresholds
Market structure and sentiment often coalesce around round numbers. For BTC, reclaiming $100,000 is likely to be viewed as a key milestone in restoring bullish near‑term sentiment.
On the downside, traders are watching whether support holds above $90,000, with some analysts highlighting the $88,000 area as a potential next downside target if selling resumes.
From a volatility and liquidity perspective, Bitcoin’s move appears consistent with a broader crypto market deleveraging rather than asset‑specific news. The fact that BTC is oversold on momentum indicators and trading below major support identified by volume analysis underscores the need for cautious position sizing, especially when leverage is involved.
A Broader Deleveraging, Not Just Coin‑Specific Weakness
One of the most important takeaways from this episode is that the coordinated decline across Bitcoin and Ethereum – along with the concentration of liquidations in long positions – points to system‑wide deleveraging. This is supported by:
Aggregated liquidation charts
Data from Coinalyze and similar platforms shows persistent red bars (long liquidations) dominating the recent correction period. This pattern typically reflects a market where leverage had built up on the long side and is now being unwound.
Historical context
October saw even larger liquidation spikes, especially for Ethereum, which experienced a liquidation event of around $800 million during that earlier selloff. Such episodes are not new to crypto; historically, large liquidation clusters have often—though not always—coincided with local bottoms or transitional phases in the market structure.
Oversold, but facing heavy resistance
Both BTC and ETH now exhibit oversold RSI readings and sit below major resistance zones on volume profiles. This combination suggests that:
Near‑term bounces are plausible as selling pressure abates and short‑term traders seek to fade extreme pessimism.
However, any sustained recovery must absorb considerable overhead supply, particularly in the $4,000–$4,400 range for ETH and $110,000–$112,000 for BTC.
For market builders and professionals in DeFi and fintech, episodes like this highlight the importance of robust risk management frameworks, particularly when integrating derivatives data into:
On‑chain lending parameters and liquidation bots
Option pricing and hedging strategies
Treasury management for protocols and platforms
User‑facing products that involve leveraged exposure
What to Watch Next
Going forward, several indicators will be worth monitoring for participants tracking Bitcoin and Ethereum price action, liquidations, and crypto market risk:
Funding rates and open interest
Persistently negative funding rates and falling open interest can signal that leveraged longs are being washed out and the market is resetting.
Stability of key support zones
For ETH: whether the $3,000–$2,800 band can form a durable base.
For BTC: whether price can hold above $90,000–$88,000 and eventually reclaim $100,000.
Shifts in on‑chain behavior
Exchange inflows/outflows of BTC and ETH
Stablecoin flows and risk‑on/risk‑off rotations
Changes in long‑term holder vs. short‑term holder behavior
Macro and regulatory headlines
Crypto markets remain sensitive to broader macro conditions, policy updates, and ETF flows, all of which can interact with leverage to amplify moves.
The latest $70 million in Bitcoin and Ethereum liquidations is another illustration of how quickly crypto leverage can unwind when key levels break. Both BTC and ETH now trade in oversold territory, yet face substantial resistance overhead, leaving the market finely balanced between potential short‑term rebounds and further downside if selling resumes.
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