Ethereum Price Forecast - ETH-USD Plunges to $4,179 After $500M Wipeout, ETF Inflows Defy Selloff

Ethereum (ETH-USD) Crashes Below $4,200 as $500M Liquidations Rattle the Market

Ethereum Suffers Sharp Breakdown With ETH-USD at $4,179

Ethereum has endured a heavy sell-off, with ETH-USD last trading at $4,179.45, down 6.67% on the day, erasing critical supports and fueling concerns of a deeper correction. The drop followed a $500 million wipeout in leveraged long positions, the largest since July, which triggered cascading liquidations across exchanges. After failing to hold the $4,488 support, Ethereum tumbled to intraday lows near $4,160, placing the market under heavy bearish pressure. The move also widened the gap from last week’s peak above $4,700, showing how quickly momentum has shifted.

Massive Derivatives Flush and Technical Weakness Amplify ETH’s Downside

Coinglass liquidation heatmaps show a concentration around $4,424, an area repeatedly tested before bulls capitulated. This flushout has been confirmed by technical momentum signals: the Chaikin Money Flow dropped to -0.13, highlighting net capital outflows, while the Supertrend flipped bearish and the MACD completed a downside crossover on the daily chart. The Relative Strength Index at 43 confirms selling dominance. With derivatives positioning unwinding, ETH is at risk of slipping into a prolonged correction unless buyers reclaim momentum above $4,488 quickly.

Ethereum Support and Resistance: Key Levels to Watch

The technical setup now places Ethereum at a decisive juncture. Immediate support sits at $4,140, just above the psychological $4,000 threshold. A clean break below this zone opens a path toward $3,800, with further capitulation risks down to $3,657 and $3,253, where historical liquidity zones converge. On the topside, resistance lies at $4,232, followed by $4,488, the prior floor now turned ceiling. Clearing $4,700 would be critical to restore bullish momentum and reopen the path to $5,000–$5,200, but the structure shows exhaustion after multiple failures at this range.

Ethereum’s Divergence With Bitcoin and Broader Crypto Moves

Ethereum’s decline has mirrored weakness across majors but is sharper in scale. Bitcoin (BTC-USD) trades at $112,833, down 2.25%, holding its 50-day EMA at $114,002 as the final defense before support at $107,245. Meanwhile, XRP trades at $2.87, down 3.57%, extending last week’s 2% drop. The synchronized correction underscores how leveraged deleveraging has spread across the sector. The Fear & Greed Index moved back into fear territory, confirming deteriorating sentiment. Still, Ethereum has underperformed Bitcoin in recent days, raising questions on whether its network-specific issues and liquidations are magnifying losses.

Fusaka Upgrade as a Structural Catalyst for ETH-USD

Despite short-term pressure, Ethereum’s fundamentals remain defined by its upcoming Fusaka upgrade scheduled for December 3. The fork will introduce increased blob capacity, gas efficiency, and rollup cost reductions, a package designed to tackle Ethereum’s long-standing transaction bottlenecks. These changes come at a time when demand for Ethereum Layer 2 scaling solutions is climbing. Institutional activity supports this outlook: ETF inflows of $163 million last week confirm continued interest, even during volatility. Furthermore, whale accumulation has accelerated, with 820,000 ETH, worth $3.8 billion, purchased in 72 hours, signaling that long-term players are using this correction as an entry point.

Macro Headwinds and Dollar Dynamics Weigh on Ethereum

Ethereum’s sell-off also reflects global macro pressure. The Federal Reserve’s 25 bps cut, which brought the funds rate to 4.00%–4.25%, was framed as a risk-management decision. Yet Powell’s tone was less dovish than markets expected, leading to a rebound in the U.S. Dollar Index (DXY), now trading at 97.65, with resistance at 97.80. A stronger dollar restricts speculative appetite for risk assets, especially crypto. U.S. Treasury yields remain elevated, with the 10-year near 4.40%, making Ethereum less attractive in the near term. Unless macro softness emerges via weaker labor or inflation data, ETH rallies may face strong resistance.

Ethereum Outlook: Bearish Near-Term, Bullish Long-Term Potential

The immediate trajectory for ETH-USD skews bearish. A failure to hold $4,140 would expose the $4,000–$3,657 corridor, extending losses into Q4. Only a sustained close above $4,488 and then $4,700 would repair technical damage and open targets of $5,000–$5,200, with more ambitious scenarios pointing to $5,800 and $9,000 in 2025 if Fusaka succeeds and institutional inflows accelerate. For now, Ethereum remains a Sell on rallies below $4,488, with traders eyeing deeper downside, while long-term investors may see sub-$4,000 zones as accumulation opportunities given ETH’s structural upgrades and whale confidence.