Bitcoin and Ethereum liquidations hit $70m as ETH breaks below $3,000

The cryptocurrency market experienced a notable downturn on November 17, 2025, leading to substantial liquidations for both Bitcoin (BTC) and Ethereum (ETH). Combined, these liquidations surpassed $70 million, as Ethereum’s price briefly fell below the significant psychological threshold of $3,000. Bitcoin also faced downward pressure, testing support levels around $92,000. This market event highlights the inherent volatility and the impact of cascading liquidations on highly leveraged positions within the digital asset ecosystem.

Understanding Crypto Liquidations

In cryptocurrency trading, a “liquidation” refers to the forced closing of a trader’s leveraged position by an exchange or brokerage platform. This typically occurs when a trader’s margin account no longer meets the necessary requirements to maintain the open position, often due to significant losses as the market moves unfavorably against their trade.

Leverage allows traders to amplify their exposure to market movements by borrowing funds, which can magnify both potential gains and losses. When the value of the collateral backing a leveraged position falls below a certain threshold, a margin call is triggered. If the trader fails to add more funds, the exchange automatically liquidates the position to prevent further losses for the lender.

This process aims to protect both the trader from accumulating more debt and the exchange from unrecovered funds. However, it often results in traders losing their entire invested capital in that specific position and can exacerbate market downturns through a cascade of forced selling.

Ethereum’s Breach Below $3,000

On November 17, 2025, Ethereum’s price briefly dipped below the $3,000 mark, a key psychological support level for the second-largest cryptocurrency. This breach triggered a significant wave of liquidations, with Ethereum accounting for a substantial portion of the combined $70 million total.

The movement reflects broader market uncertainty and selling pressure. While some analysts in late October and early November had predicted a potential rebound or even a climb towards $4,000-$5,000 for ETH by the end of 2025, the recent price action indicates that bearish sentiment prevailed in mid-November.

Technical indicators during this period often showed deeply oversold conditions, with the Relative Strength Index (RSI) for Ethereum noted in the low 30s or even below. Breaking below critical support levels like $3,000 often suggests that further downside targets, such as $2,800 or even $2,500, could be tested if selling pressure persists.

Bitcoin’s Test of $92,000 Support

Concurrently with Ethereum’s decline, Bitcoin also faced considerable selling pressure, pushing its price to test support levels near $92,000 on November 17, 2025. This occurred after Bitcoin had already experienced a week-long sell-off, dropping to a seven-month low and erasing its gains for the calendar year 2025.

Earlier in November, Bitcoin had even briefly fallen below $100,000, triggering billions in liquidations. The ongoing downturn for Bitcoin has been attributed to several factors, including fading hopes of a US Federal Reserve rate cut, signals of persistent inflation, and thin liquidity in the market.

Despite some whale accumulation observed below $100,000, institutional outflows from Bitcoin ETFs also contributed to the downward pressure. Technical analysis pointed to Bitcoin slipping below a 15-month trendline support, suggesting continued weakness. The Crypto Fear & Greed Index during this period registered “extreme fear,” reflecting the cautious mood among investors.

Broader Market Dynamics and Contributing Factors

The simultaneous decline and substantial liquidations across both Bitcoin and Ethereum indicate a broader market deleveraging event rather than isolated asset-specific issues. The overall cryptocurrency market sentiment in November 2025 has been characterized by apprehension and “extreme fear.”

Macroeconomic factors played a significant role, including investor uncertainty regarding US Federal Reserve interest rate policies and global trade tensions. Analysts noted that traders were moving towards assets with clearer exposure to economic policies, and the US government shutdown concerns also influenced risk-off sentiment.

Despite the prevailing negative sentiment, some analysts suggested that such periods of extreme fear could paradoxically precede an “unexpected November rally,” as “weak hands” might sell off, allowing “diamond-handed” long-term holders to accumulate assets.

What This Means for Traders and Investors

The recent liquidation events underscore the amplified risks associated with leveraged trading in volatile markets. For traders, the importance of robust risk management strategies, including setting stop-loss orders and managing leverage ratios, becomes paramount during periods of heightened market instability.

For long-term investors, market corrections and significant price dips can present accumulation opportunities, particularly when fundamental factors remain strong. However, caution is advised as prices could explore lower support levels before a sustained recovery takes hold. Monitoring key technical levels, macroeconomic developments, and overall market sentiment will be crucial in navigating the coming weeks.

FAQ Section

How much has been liquidated across Bitcoin and Ethereum positions?

Bitcoin and Ethereum experienced combined liquidations exceeding $70 million on November 17, 2025, as both cryptocurrencies tested critical support levels.

Did Ethereum break below the $3,000 psychological level?

Yes, Ethereum briefly traded below $3,000 on November 17, 2025, marking a significant breach of this key psychological support level.

What causes crypto liquidations?

Crypto liquidations are forced closures of leveraged trading positions when a trader’s margin account can no longer cover potential losses as the market moves against their trade. Exchanges liquidate these positions to prevent further debt for the trader and protect the lender’s capital.

Conclusion

The recent market turbulence, marked by Bitcoin and Ethereum liquidations totaling over $70 million and ETH briefly falling below $3,000, serves as a stark reminder of the inherent volatility within the cryptocurrency landscape. While these events represent significant challenges for leveraged traders, they also reflect broader market dynamics influenced by macroeconomic factors and shifting investor sentiment. As the market digests these movements, observing key support levels and exercising prudent risk management will be essential for participants. The interplay of fear, accumulation, and external economic forces will likely continue to shape the trajectory of these major digital assets in the near term.