<p>As Bitcoin (BTC) dropped below $93,000 earlier today, Ethereum (ETH) tested a key support level above $3,300. The leading altcoin, with a fully diluted valuation of about $399 billion, fell nearly 5% in the last 24 hours, trading around $3,315 during the early hours of Tuesday's New York session.</p>   
<p>The crypto market's heightened volatility saw over $95 million liquidated from Ether’s leveraged positions, mostly impacting long traders. Adding to the uncertainty, Ethereum’s Open Interest (OI) recently surpassed $20 billion for the first time, signaling more potential price swings in the near term.</p>   
<h2 class="wp-block-heading" id="h-on-chain-activity-increases">On-Chain Activity Increases </h2>   
<figure class="wp-block-image size-large">
 <img src="https://image.coinpedia.org/wp-content/uploads/2024/11/26183401/Rising-Web3-Activities-Amid-Mixed-Reactions-from-Whale-Investors-1024x487.png" alt="" class="wp-image-385654">
</figure>   
<p>Ethereum’s network activity has surged recently, even as it faces stiff competition from other blockchains like Solana (SOL) and Tron (TRX). Data from The Block shows Ethereum’s USDT transfers overtook Tron’s for the first time this year, driven by a 62% spike.</p>   
<p>According to DeFiLlama, Ethereum’s stablecoin market cap now exceeds $100 billion, led by Tether (USDT). Meanwhile, Tron’s stablecoin market cap stands at around $58 billion, also dominated by USDT.</p>   
<p><strong>Whales Send Mixed Signals - Why? </strong></p>   
<p>Meanwhile, Ether whales have shown mixed reactions in the recent past amid anticipation of a further bullish breakout. For instance, the <a href="https://coinpedia.org/price-analysis/was-ethereum-etf-a-mistake-is-it-a-good-time-to-invest-in-eth/" target="_blank" rel="noreferrer noopener">US spot Ether ETFs have flipped positive</a> in the past two days after registering notable cash outflows last week. On the other hand, <a href="https://x.com/onchaindatanerd/status/1861356164250050819?s=46" target="_blank" rel="noreferrer noopener nofollow">Flow Traders </a>deposited 6k Ether, worth over $20 M today, to OKX and Coinbase, and still hold nearly $50M in account balance.</p>   [post_titles_links postid="385598"]   
<h2 class="wp-block-heading" id="h-midterm-targets">Midterm Targets</h2>   
<p>Prominent crypto analyst Ali Martinez predicts that Ethereum is gearing up to form a new higher high after recent consolidation. Additionally, the ETH/BTC trading pair is showing a macro reversal pattern, supported by a bullish divergence on the daily<a href="https://coinpedia.org/traders/what-is-relative-strength-index-rsi/" target="_blank" rel="noreferrer noopener"> Relative Strength Index (RSI).</a></p>   
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
   https://twitter.com/ali_charts/status/1861351348320469001?s=46 
 </div>
</figure>   
<p>Ethereum’s next move depends on holding the support level near $3,257. A failure to maintain this level could see prices dip to the next significant support around $3,028 before rebounding toward $4,000. On the flip side, consistent closes above the current support would strengthen the bullish outlook and pave the way for further gains.</p>   
<h2 class="wp-block-heading" id="h-faqs">FAQs</h2>   
<div class="schema-faq wp-block-yoast-faq-block">
 <div class="schema-faq-section" id="faq-question-1732626655003">
  <strong class="schema-faq-question"><strong>What caused Ethereum's price to drop below $3,300?</strong></strong> 
  <p class="schema-faq-answer">Ethereum faced volatility amid Bitcoin’s retracement below $93k, leading to a 5% price decline and increased liquidation pressure​<a href="https://cointelegraph.com/news/crypto-crash-300-billion-largest-three-day-plunge-crypto-one-year" target="_blank" rel="noreferrer noopener"></a></p> 
 </div> 
 <div class="schema-faq-section" id="faq-question-1732626694482">
  <strong class="schema-faq-question"><strong>How does Ethereum compare to other chains in Web3 activity?</strong></strong> 
  <p class="schema-faq-answer">Ethereum’s on-chain activities have spiked, surpassing Tron’s USDT supply for the first time this year, highlighting its Web3 dominance​<a href="https://cointelegraph.com/news/crypto-crash-300-billion-largest-three-day-plunge-crypto-one-year" target="_blank" rel="noreferrer noopener"></a></p> 
 </div> 
</div>   
<p><strong>The battle between Ethereum’s network strength and market challenges continues – the outcome could surprise us all.</strong></p>

Ethereum Dips Below $3,300 As Crypto Liquidations Surge – What Next?

Table of Contents

CoinPedia News

Other articles published on Nov 26, 2024

Why Is Crypto Crashing Today? $362 Billion Wiped Out

Starknet makes history as first L2 to introduce staking on mainnet

Crypto Markets Remain Cautious Ahead of Key Economic Data

WisdomTree Files for XRP ETF, Joins Bitwise and 21Shares

What’s Happening with Crypto Today?

Altseason Speculations Heat up as Altcoins Market Cap Near May 2021 Levels (Bitfinex)

Join our free newsletter for daily crypto updates!