Ethereum entered Wednesday’s session under renewed pressure, with the market teetering at a critical technical level while liquidations climbed sharply across major derivatives exchanges.
- ETH faces pressure after $108M in liquidations.
- Price is testing the crucial weekly 50 EMA support.
- Momentum indicators show weakness, not collapse.
- Analysts say ETH is back in its fair value zone.
The second-largest cryptocurrency is trading near $3,380, extending a week-long decline that has pushed the asset directly onto what several analysts describe as its most important support zone of 2025.
Heavy Liquidations Hit the Market
According to derivatives data from the morning session, $108.7 million worth of ETH positions were liquidated in the past 24 hours, split between:
- $59.22 million in long positions
- $49.54 million in short positions
The near 50-50 split highlights growing indecision in the market, with leverage steadily unwinding as traders reassess ETH’s trajectory following a broader downturn across digital assets.
ETH Falls Back to Weekly 50 EMA – A Level That Defined the Previous Year
Well-known market commentator Merlijn the Trader noted that Ethereum has now descended onto the weekly 50-day EMA – a technical level that acted as resistance for more than a year before being reclaimed in mid-2025.
He described the area around $3,350–$3,500 as a “make-or-break zone.”
ETHEREUM: MAKE OR BREAK.$ETH is sitting on the weekly 50 EMA.
This level was resistance for over a year.Now it’s being tested as support.
Lose this… and momentum dies.
Hold it… and we send. pic.twitter.com/mS3dXgMgWB— Merlijn The Trader (@MerlijnTrader) November 13, 2025
If the level fails to hold, momentum could fade quickly, opening the door to deeper retracements toward the mid-$2,000s. But if bulls defend the EMA, Merlijn said, ETH still has enough structural strength for another upward push.
Market Indicators Flash Neutral to Weakening Signals
The 4-hour chart shows ETH gradually grinding lower over the past several weeks, with neither side establishing dominant control.
Key indicators include:
- MACD: hovering below the signal line, showing waning bullish momentum
- RSI: sitting near 42, indicating mild bearish pressure but far from oversold territory
- Price structure: forming a series of lower highs since the October peak
The setup reflects a consolidation phase rather than outright capitulation.
Fair Value Zone Reentered, Analysts Say
Another prominent analyst highlighted that ETH has now dropped back into what he calls the “fair value zone,” based on long-term Fibonacci models. According to this view, any move significantly lower would shift Ethereum into undervalued territory, which historically has been a region associated with high accumulation from institutional traders.
$ETH is now in the fair value zone.
Anything lower would push it into undervalued territory. pic.twitter.com/EhQnisJFCa
— Crypto Rover (@cryptorover) November 13, 2025
That perspective aligns with the slowdown in aggressive selling despite the broader market correction. While volatility has picked up, on-chain data suggests long-term holders are not exiting positions at scale.
What’s Next for Ethereum?
The next few sessions appear pivotal. Ethereum’s price is now pinned between a major technical support and a market sentiment dynamic that is weakening but not broken.
If ETH holds the weekly 50 EMA:
- Buyers may regain confidence
- Short liquidations could fuel a rebound
- The asset may attempt another move toward the $3,800–$4,000 zone
If ETH loses the level:
- The fair-value boundary could break
- Price may slide into undervalued territory
- The $2,800–$3,000 region becomes the next high-probability target
For now, all eyes are on whether Ethereum can maintain its footing at this long-respected technical pillar. With over $100 million in liquidations clearing out leverage, the market may soon reveal its true short-term direction.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Source: https://coindoo.com/market/ethereum-flashes-warning-signal-traders-brace-for-a-big-move/