On November 17, Bitcoin and Ethereum faced a turbulent session as combined liquidations crossed the $70 million mark, leaving investors and traders on edge. Both cryptocurrencies tested critical support levels, signaling a potentially deeper correction in the near term.
Ethereum Breaks Below $3,000
Ethereum briefly broke below the crucial $3,000 support level during the trading session, a move that triggered $50.7 million in liquidations. According to data from Coinalyze, most of these liquidations were long positions, as leveraged traders faced substantial losses.
Volume profile data highlights that Ethereum’s price now sits significantly below major resistance zones. Key trading activity previously happened in the $4,000 to $4,400 range—forming a supply wall that could challenge any recovery efforts. Immediate resistance appears near $3,800, while the $3,000 level is now being re-tested as potential support.
Adding to the bearish outlook, Ethereum’s Relative Strength Index (RSI) currently stands at 31.09, indicating oversold conditions. From its October peak of $4,800, Ethereum has seen a steep 37% decline driven by persistent selling pressure.
Bitcoin Struggles at $92,000
Bitcoin, the flagship cryptocurrency, is also battling heavy corrections. The coin is now trading at approximately $92,071 after shedding 2.24% in a day. Aggregate liquidations for Bitcoin amounted to $18.2 million, with its RSI dropping to an extreme oversold level of 28.77—the lowest during this corrective phase.
Looking at volume profile data, Bitcoin faces significant resistance between $110,000 and $112,000. Immediate recovery would require reclaiming the critical $100,000 zone; however, overhead supply remains a hurdle. The coin has already lost 27% from its October high of $127,500, and market analysts warn of potential dips toward $88,000 if downward momentum continues.
Market-Wide Deleveraging
The synchronized decline across Bitcoin and Ethereum underscores a broader market deleveraging rather than asset-specific weakness. Coinalyze reports show sustained selling pressure, with a majority of liquidations affecting overleveraged long positions. Despite extreme oversold conditions indicated by RSI metrics, technical recovery faces resistance in heavily traded zones.
What’s Next for Bitcoin and Ethereum?
As the crypto market stabilizes, traders are closely monitoring support levels. A bounce-back attempt might materialize, but robust resistance zones identified through volume analysis could impede progress. Both Bitcoin and Ethereum’s performance over the coming weeks heavily depends on whether they can maintain current support levels or if new lows await.
For investors looking to increase skin in the game, consider short-term strategies focused on oversold conditions. Alternatively, exploring secure cryptocurrency wallets like Trezor can help you safeguard assets during uncertain periods.
