Bitcoin and Ethereum have experienced significant liquidation events, totaling approximately $70 million as Ethereum fell below the critical $3,000 mark on November 17. Specifically, Bitcoin faced $18.2 million in liquidations, while Ethereum accounted for $50.7 million, primarily impacting long positions.
The decline in Ethereum was notable, as it briefly traded below $3,000, currently hovering around $3,019 after a daily decrease of 2.36%. The breach of this psychological support level led to substantial liquidations, with data from Coinalyze indicating that short positions were largely responsible for these forced closures.
Volume profile analysis shows that the current price of Ethereum remains well below significant resistance areas, with the most considerable trading activity observed between $4,000 and $4,400, forming a formidable supply wall that could hinder recovery efforts. The immediate resistance level appears to be around $3,800, while support is currently being tested at $3,000. The Relative Strength Index (RSI) for Ethereum stands at 31.09, indicating oversold conditions.
In parallel, Bitcoin is trading at $92,071, down 2.24% for the day, and has seen $18.2 million in liquidations. The leading cryptocurrency has dropped roughly 27% from its October peak of around $127,500, as it struggles to maintain support above $90,000. Technical indicators suggest that it is also in oversold territory, with an RSI of 28.77, marking the lowest point in the recent correction.
Volume profile data indicates significant resistance for Bitcoin between $110,000 and $112,000, where extensive trading has previously occurred. This resistance cluster could pose a major challenge for any recovery attempts. Currently, the price action is below all major support zones identified through volume analysis, with the $104,000 level now acting as immediate resistance. To shift near-term market sentiment, Bitcoin would need to reclaim the $100,000 level, although substantial overhead supply complicates this scenario.
The simultaneous decline of both cryptocurrencies suggests a broader market deleveraging rather than issues specific to individual assets. Liquidation data from Coinalyze confirms ongoing selling pressure, with the liquidation charts dominated by red bars throughout this correction period. Most liquidations affected long positions as overleveraged traders faced margin calls during the rapid price decline.
Despite the current oversold conditions indicated by both RSI metrics, potential bounce attempts may be hindered by the resistance zones identified in volume profile analysis. Traders are closely observing whether support holds at current levels or if further capitulation will drive prices down towards $88,000 for Bitcoin and $2,800 for Ethereum.
