ETH Breaks Below the $3,000 Threshold as Market Faces Fresh Liquidation Wave

The cryptocurrency market experienced significant turbulence on November 17th, with Ethereum sliding beneath its critical $3,000 support barrier amid a broader sell-off. The second-largest digital asset by market capitalization saw Bitcoin also retreat below the $92,000 mark, creating a cascade of forced liquidations across the sector.

Market Liquidation Spike and Price Pressure

According to Coinglass data, the market clearing saw approximately 164,696 traders exit their positions, with liquidation values reaching $894.65 million within a 24-hour window. At the time of this analysis, ETH was trading near $2,982.37, representing a 3.97% decline over the daily period, while Bitcoin held around $91,448.19 with a 2.98% pullback.

The overall crypto market valuation contracted to $3.1 trillion, reflecting the broader bearish sentiment gripping investors.

Understanding the Liquidation Mechanics

Analyst Ted identified a significant concentration of trading volume clustered between the $2,900 and $3,000 bracket for Ethereum. Historically, this price zone functions as a critical pivot point, often attracting prices downward before rebounds. The analyst suggests that this sweep mechanism may continue to $3,600, where another substantial resistance layer exists.

The mechanics behind current weakness reveal deeper structural issues. As one prominent market observer noted, the persistence of downward pressure since early October suggests potential market-maker balance sheet stress. When liquidity providers face capital constraints, they reduce market-making activity—creating what amounts to “quantitative tightening” in crypto markets. During the 2022 downturn, similar episodes lasted 6-8 weeks, with current conditions exhibiting comparable characteristics.

Contrarian Views: Long-Term Optimism Persists

Despite near-term weakness, Tom Lee, a prominent research figure in the digital assets space, maintains conviction that Ethereum is establishing a market bottom during this current week. More notably, Lee projects ETH could surge to $7,000 within the subsequent 45-day window, driven by what he characterizes as a “surprising breakout.”

Lee’s thesis rests on two fundamental developments: the explosive growth in Ethereum-native stablecoin activity and the emerging tokenization megatrend reshaping the ecosystem.

The Fusaka Upgrade and Ecosystem Evolution

The Ethereum network is positioned to undergo a major technical refresh through the Fusaka upgrade, anticipated for December deployment. This comprehensive update introduces PeerDAS (EIP-7594), enabling nodes to randomly sample Layer-2 blob information while slashing storage requirements by up to 90%. The upgrade encompasses 13 EIPs total, including enhanced verification mechanisms through Verkle Tree architecture.

These improvements are designed to compress transaction costs, accelerate network throughput, and provide substantial growth catalysts for Layer-2 applications and real-world asset tokenization initiatives—setting the stage for what Ethereum’s creator Vitalik Buterin describes as a critical milestone toward full Danksharding implementation.

Stablecoin Dominance and Cross-Border Applications

Ethereum’s position as the dominant blockchain for stablecoin deployment has strengthened following recent regulatory clarity. With major stablecoins including USDT and USDC anchored on the network, Ethereum is emerging as the infrastructure backbone for international payment flows. The recent regulatory environment has catalyzed accelerated stablecoin growth, positioning the blockchain as essential for cross-border transaction efficiency and capital movement.

Current Market Data: ETH is trading at $3.30K with a -1.81% 24-hour change, while BTC stands at $95.56K with a -1.74% daily adjustment.