Ethereum – How $20B DeFi drain left ETH bulls on $3.2K edge
The post Ethereum – How $20B DeFi drain left ETH bulls on $3.2K edge appeared on BitcoinEthereumNews.com.
Key Takeaways Has Ethereum bottomed yet? Back-to-back lower lows, thin bids, and weak post-crash structure suggest Ethereum’s $3.2k floor remains fragile. Is the current liquidity supporting a breakout? ETH’s stablecoin supply has hit an all-time high, but FOMO hasn’t kicked in, keeping conviction low. Has Ethereum [ETH] really bottomed? ETH kicked off November by breaking through not one, but two key floors. First, a 7.78% dip saw ETH fail to flip $3.8k into support, and that was followed by an even deeper 8.80% drop, struggling to hold $3.5k. In short, ETH posted two back-to-back lower lows in a single week, which typically signals a bearish market structure. Does this mean calling Ethereum’s current chop around $3.2k a bottom is a bit premature? Back-to-back crashes keep Ethereum weak After back-to-back crashes, Ethereum is struggling to find its footing. For context, on the 3rd and 4th of November, the market saw another flash crash, triggering a $2 billion liquidation cascade. Sure, it was a small fry compared to mid-October’s $20 billion wipeout. However, the sentiment hit was clear. ETH dropped 15% to $3.05k, printing two back-to-back lower lows. Sure, a local floor here could rotate some bids in, but the post-crash structure still looks fragile. Source: TradingView (ETH/USDT) Flashback to the October crash, ETH chopped for three weeks straight. During that stretch, Ethereum retested $3.8k four times as bulls tried to reclaim the pre-crash open at $4.3k and build a bottom. Still, selling pressure kept the structure fragile, with no real follow-through. Fast-forward to now, a bottom around $3.2k won’t trigger a breakout unless follow-through shows up. That said, stablecoin supply on Ethereum just hit an all-time high. So, could this post-crash cycle play out differently? Liquidity flows in, yet ETH fails to show conviction Liquidity is piling in, but Ethereum bulls…
