Ethereum Faces Critical Liquidation as Whale’s 67,675 ETH Gets Liquidated

• A whale’s 67,675 ETH liquidation adds pressure as Ethereum struggles to hold $2,000 support, risking further downside.
• ETH’s recovery hinges on breaking $2,700 resistance; failing could extend bearish trends below key support levels.
• Liquidity zones and volume spikes signal market sentiment shifts, impacting ETH’s next major price move.

Ethereum (ETH) is witnessing increased volatility as a big whale is fighting to avoid liquidation. Lookonchain says the whale’s 67,675 ETH, valued at $121.8 million, has reached its liquidation price. Despite the fact that it added 2,000 ETH ($3.73 million) and repaid 1.54 million DAI, the price still fell below $1,836.43, which is the liquidation price.

ETH Market Structure and Price Action

Ethereum’s price action reveals multiple structural shifts, including Break of Structure (BOS) events and Changes of Character (ChoCH). A bearish BOS led to a decline from the $3,500-$3,700 range to the $2,000 support zone. This level has been tested multiple times, highlighting strong accumulation and buying pressure.

Moreover, the price recently formed a weak low before rebounding. This suggests that the support around $2,000 remains a crucial pivot point. However, if ETH fails to hold above this level, further downside could occur.

Potential Recovery and Key Resistance Levels

A bullish scenario suggests a recovery toward the $2,700 price level. If Ethereum maintains its current support, it could push toward the $2,700-$2,900 resistance range. This region has previously acted as a supply zone where selling pressure increased.

Additionally, the higher timeframe resistance stands at $3,500-$4,000. This level has historically triggered strong rejections. For ETH to regain bullish momentum, it must break past these key resistance areas.

Liquidity Zones and Volume Analysis

 Multiple liquidity zones have formed around areas of price reversals. These zones indicate potential demand or supply surges, affecting future price movements. The all-time high of nearly $5,000 remains a distant target, but a sustained uptrend could bring ETH closer to this level.

Besides, trading volume has spiked during key market movements, reflecting strong buyer and seller participation. Previous volume surges coincided with major breakouts and reversals. Hence, monitoring volume trends is essential to gauge market sentiment.