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Ethereum News Today: Ethereum Faces the $2,800 Test—Will It Hold Steady or Falter?

Ethereum News Today: Ethereum Faces the $2,800 Test—Will It Hold Steady or Falter?

Bitget-RWA2025/11/21 11:58
By:Bitget-RWA

- Ethereum fell to $2,870, a key support level, amid Fed policy uncertainty and macroeconomic fears. - Technical analysis suggests stabilization near $2,800 as retail traders sell while large holders accumulate. - Declining forced liquidations and rising short positions hint at potential short squeeze risks. - Trump's 2026 tariff plans and Fed liquidity delays add uncertainty to crypto's near-term outlook.

Ethereum’s value has dropped sharply to a crucial support area, reigniting discussions about whether the digital asset is forming a bottom or if further losses are ahead. On November 19, the coin briefly touched $2,870,

, after the Federal Reserve’s meeting minutes were released, which added to market uncertainty. Although the wider cryptocurrency sector has been shaken by macroeconomic worries, both on-chain indicators and chart analysis indicate could be finding stability near the $2,800 mark—a price level that has historically signaled market bottoms.

The latest wave of selling was sparked by the Fed’s October 28–29 meeting summary,

over whether to cut rates in December. A narrow majority were against a reduction, while some suggested a cut “might be appropriate,” leading to turbulence across financial markets. dropped to its lowest level in seven months, and Ethereum slipped to $2,870 before recovering to $3,036, still 1.13% lower over the last day. Experts point out that the $2,800 region is a significant psychological level, backed by on-chain data showing clusters of retail and whale activity. At this price, their holdings, while major players (with more than 10,000 ETH) are buying, suggesting a possible redistribution phase.

Ethereum News Today: Ethereum Faces the $2,800 Test—Will It Hold Steady or Falter? image 0
Forced liquidations of long positions are also decreasing, which is easing some of the downward pressure on prices. At the same time, is raising the likelihood of a short squeeze—a sudden price surge that could happen if buyers step in during a period of low liquidity. Technical analysts, including trader @ero_crypto and Matt Hughes, have identified $2,800 as a pivotal level. Hughes observed that to $2,870 corresponds to the midpoint between its 2021 high and 2022 low, placing the move within typical crypto market volatility.

Wider market dynamics add further challenges.

have picked up speed, with balances falling to $85 billion—the lowest since October 11—as investors pull out. has dropped to 17, a level not seen since April, indicating extreme fear amid uncertainty over Trump’s tariff proposals and the Fed’s policy direction. Meanwhile, Bitcoin’s value has slipped below $93,000, forming a death cross, and Ethereum has shed 35% from its yearly peak.

Despite the negative sentiment, some market watchers believe a liquidity reset could set the stage for a multi-week bottoming process.

that Ethereum tends to consolidate for several weeks after liquidity dries up, rather than breaking down completely. Still, . Trump’s proposed $2,000 tariffs for mid-2026 could intensify inflation, while the Fed’s delayed liquidity moves—tied to Bessent and Trump’s policy requirements—add to the unpredictability.

The next direction for the crypto market will likely depend on whether the $2,800 support holds and how the Fed approaches its December policy meeting. For now, Ethereum’s on-chain signals and technical trends provide cautious optimism, even as broader economic challenges remain.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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