Wave of Liquidations Rocks Crypto Markets
On November 17, cryptocurrency markets witnessed a sharp downturn that triggered over $70 million in liquidations across Bitcoin and Ethereum. As traders struggled to maintain leveraged positions, automated margin calls cascaded through major exchanges, wiping out significant long bets just as the broader market sentiment turned bearish. The sudden flush exacerbated volatility, with bid-ask spreads widening across spot and derivatives venues.
Ethereum Breaches Critical $3,000 Threshold
Ethereum was the hardest hit, briefly tumbling below the $3,000 support level for the first time in weeks. Weakness in decentralized finance (DeFi) outflows and a cooling of NFT trading volumes added pressure on ETH markets. On-chain data showed a spike in leveraged ETH liquidations as stop-loss orders were violently swept, underscoring how sensitive the token remains to broader risk-off winds and rising funding rates.
Bitcoin Holds Near Six-Figure Mark
Meanwhile, Bitcoin oscillated near the $92,000 zone, attempting to absorb selling pressure even as correlation with altcoins spiked. Miners scaled back on-chain selling after recent network fee improvements, but large holders remained cautious. Open interest in BTC perpetual swaps dipped modestly, suggesting that institutional traders may be using this consolidation phase to rebalance exposures ahead of potential macro announcements.
Outlook and Risk Management
With monetary policy chatter and key economic prints on the horizon, crypto traders are bracing for further turbulence. Short-term support for Ethereum now sits around $2,900, while Bitcoin will need to clear the $94,000 resistance band to reignite bullish momentum. Risk managers are advising reduced leverage, tight stop-loss frameworks and diversification into stablecoins or low-volatility strategies until market clarity returns.