Ethereum Crypto Faces Heavy Selling Pressure After $349M Liquidation Wave – Here Is What Comes Next

• Ethereum led crypto liquidations with $349 million wiped out, including over $274 million in long positions.
• Exchange inflows and slowing network growth point to increasing downside pressure for ETH.
• Analysts say patience may be the better strategy until stronger signs of renewed buying emerge.

Ethereum took the biggest hit during the latest crypto market sell-off, with the derivatives market recording a staggering $1.42 billion in liquidations over the past 24 hours. Of that total, ETH alone accounted for roughly $349.17 million, while long traders absorbed the bulk of the damage at $274.29 million. The sharp move pushed Ethereum back toward the $1,550 level, an area last tested during the first week of June, as the broader market remained under pressure with Bitcoin slipping below the key $60,000 support.

The speed of the decline suggests that forced liquidations amplified the sell-off rather than ordinary profit-taking. That kind of cascade can snowball quickly once leveraged positions begin closing automatically. Even so, on-chain data now hints the pressure may not be over just yet.

Exchange Flows and On-Chain Activity Flash Warning Signs

Fresh data from Glassnode shows Ethereum’s seven-day average net transfer volume to and from exchanges has flipped back into positive territory. Over the previous three weeks, the metric remained negative, meaning more ETH was leaving exchanges than entering them, often viewed as a constructive sign for prices.

That trend has now reversed. More Ethereum is flowing back onto exchanges, increasing the available supply that could potentially be sold into the market. It doesn’t guarantee another leg lower, but it certainly adds another layer of caution while sentiment remains fragile.

Network activity is also losing momentum. Glassnode’s New Address Momentum indicator compares the monthly average of newly created addresses against the yearly average to measure adoption trends. Since late April, the monthly figure has remained below the annual average, pointing to weaker network growth and reduced on-chain participation. Historically, that kind of slowdown has often lined up with softer market sentiment and prolonged price weakness.

Derivatives Traders Continue Buying Despite Weak Price Action

Interestingly, derivatives traders haven’t completely abandoned Ethereum. CryptoQuant’s seven-day average Taker Buy-Sell Ratio has stayed in positive territory since June 10, suggesting buyers continue stepping in and lifting offers even as prices struggle to hold gains.

Last week’s brief recovery toward $1,800 looked promising at first, but it faded almost as quickly as it appeared. Even so, persistent buying interest shows speculative traders are still willing to take risks. Ironically, that also creates conditions where another squeeze, either upward or downward, can develop if positioning becomes too one-sided.

Analysts Say a Bullish Turn Is Possible, But Not Yet

CryptoQuant analyst CryptoOnchain recently examined Ethereum using a systematic market regime model that combines Bitcoin derivatives activity with stablecoin flows into centralized exchanges. The model paints a cautious picture, assigning only about a 45% probability that Ethereum is approaching a bullish regime shift.

One signal worth watching is stablecoin inflows to Binance. Rising stablecoin deposits typically suggest investors are preparing fresh capital for purchases and becoming more comfortable taking on risk again. Until that trend becomes more obvious, however, the market may remain stuck in a defensive posture.

For now, Ethereum finds itself caught between persistent speculative buying and weakening on-chain fundamentals. Unless fresh capital begins flowing back into the market, waiting for clearer confirmation may prove wiser than rushing into either bullish or bearish bets.