ETH dives to $2K – lowest since November: Is a $1900 crash imminent?

• Ethereum tumbled 15% to $2,000 as whales unload, despite its inclusion in strategic reserves.
• Is a drop to $1,900 now a real possibility?

Ethereum’s [ETH] price action turned brutal as ETH plunged 15% to $2,000 – its lowest level since November. The breakdown shattered key support as whale-driven sell-offs erased all post-election gains.

Even the “anticipated” boost from Ethereum’s inclusion in strategic reserves failed to halt the outflows, with ETH ETFs bleeding $51.36 million.

With elevated sell-side liquidity and “extreme” fear dominating the market, defending key levels remains a challenge. If bulls fail to hold the line, a drop to $1,900 is increasingly likely.

Internal and external factors under focus

Following Donald Trump’s tweet on a ‘potential’ strategic reserve, the crypto market cap surged 8%, briefly reclaiming the $3 trillion mark.

However, at press time, it has retraced sharply, dropping 10.20% to $2.78 trillion. A staggering $220 billion was wiped out in just 24 hours. Clearly, market volatility remains sky-high.

In such a climate, while an immediate rebound for Ethereum appears unlikely, the 15% decline has pushed prices into a key demand zone. This presents a potential accumulation opportunity for those eyeing discounted entries.

Yet, on-chain metrics suggest weak buyer interest.

Source: CryptoQuant

The Coinbase Premium Index (CPI) remains negative, signaling a lack of U.S. institutional demand. Rising Ethereum exchange reserves and a 5.50% drop in trading volume point to sustained sell pressure.

With dip-buying absent, Ethereum faces a high probability of further downside. Unless conditions shift or demand-supply equilibrium triggers consolidation, a drop to $1,900 remains the likely scenario.

Ethereum crash : Liquidity concerns and market sentiment

Ethereum’s sell-off intensified as $168.13 million in long liquidations were triggered, coinciding with a surge in sell-side liquidity. 

This came just a day after the market saw a $2 billion influx in new positions, driving Open Interest (OI) up 10% to $21.11 billion. 

Source: Coinglass

However, the rapid de-leveraging, marked by an 8.39% drop in OI, intensified volatility as futures traders aggressively closed positions. They did this either to mitigate losses or secure gains.

With market liquidity thinning and sell-offs intensifying, Ethereum remains vulnerable to further declines unless demand steps in to trigger a supply shock.

Beyond on-chain metrics, broader market sentiment plays a crucial role.

If Bitcoin’s “dip” attracts strong accumulation, Ethereum could stabilize. However, with extreme fear, ongoing de-leveraging, and weak bid-side liquidity, a drop to $1,900 appears increasingly probable.