Ethereum Plunges to $2,700 as Market Sees Massive Liquidations

Ethereum experienced a severe downturn on Saturday, tumbling below the psychologically significant $2,800 level and crashing deep into the $2,700 territory. At its lowest point, the asset even tested the $2,650 support zone. This dramatic price collapse has left market participants questioning its underlying causes and whether this marks the beginning of a deeper correction or a stealth accumulation opportunity for major players.

Market data reveals a staggering scale of forced position closures. Over $300 million in leveraged trades were liquidated within a single hour, escalating to nearly $950 million over the preceding 24-hour period. The sell-off disproportionately impacted leveraged long positions, creating a classic squeeze scenario that significantly amplified downward momentum.

Simultaneously, institutional capital is exiting the market. Spot Ethereum ETFs have recorded net outflows approximating $262 million. This institutional retreat is largely attributed to robust U.S. labor market data, which has effectively dashed market expectations for imminent interest rate cuts from the Federal Reserve. The resulting strength in the U.S. dollar and a broader "risk-off" sentiment are hitting cryptocurrency assets with considerable force.

Institutional Players Emerge as Buyers Amid the Panic

While retail investors and short-term speculators are capitulating, a different dynamic is unfolding among other market participants. On-chain analytics indicate that institutional entities, including BitMine and SharpLink, are substantially increasing their ETH holdings. These players now collectively hold over 4.35 million ETH.

Should investors sell immediately? Or is it worth buying Ethereum?

This divergence in behavior is striking: panic-driven selling by short-term traders contrasts sharply with the deliberate accumulation by long-term, strategic investors. This raises the question of whether Ethereum's fundamental value proposition remains intact despite the current market turbulence.

The Critical $2,700 Juncture: Support or Springboard?

From a technical analysis perspective, Ethereum is at a critical inflection point. The $2,700 level now represents the final key defensive barrier. A decisive break below this zone could trigger a further descent toward $2,500, an area of historical significance and major support.

However, certain technical indicators are beginning to flash oversold signals. The Relative Strength Index (RSI) is approaching critical levels on shorter timeframes. A successful reclaim of the $2,850 threshold could potentially invalidate the current bearish structure and catalyze a technical rebound.

The upcoming trading sessions will be decisive in determining whether the large-scale accumulators have correctly anticipated the market's direction, or if prices must decline further before a sustainable recovery can begin.