Ethereum slumped to nearly $3,700 earlier today, sending shockwaves across the crypto market as panic-driven liquidations swept through leveraged positions. Within 24 hours, more than $884 million worth of trades were wiped out, marking one of the steepest single-day shakeouts in recent weeks. Despite the heavy losses, Ethereum has since bounced back to $3,849 after touching a daily low of $3,681.91.
According to Coinglass data, long traders were hit hardest, with $764 million in bullish positions liquidated compared to $120 million in shorts. The Fear and Greed Index dropped to 31, reflecting a surge in market fear as traders rushed to cut exposure. This rapid shift from optimism to caution underscores the current fragility in crypto sentiment.
Funding Rates Signal Panic as Short Bets Increase
According to on-chain analytics firm Santiment, Ethereum’s funding rates have turned deeply negative across several exchanges. Historically, similar conditions often appear before a price rebound as short positions become overcrowded. The firm explained that when traders grow overly greedy, markets tend to correct, while spikes in short interest usually precede recoveries.
Ethereum has dropped back to $3.7K, and traders are showing signs of panic. The past 2 months, funding rates across exchanges dictate where $ETH goes next. When major longs dominate (greed), prices correct. When major shorts dominate, there's a high probability of a bounce. pic.twitter.com/3s47hlDgZr
— Santiment (@santimentfeed) October 30, 2025
This setup mirrors several market phases seen throughout September and October when Ethereum recovered quickly after similar funding imbalances. Still, analysts caution that volatility could persist as the market continues to unwind excessive leverage.
Long Liquidations Persist as Over-Leveraging Deepens
Insights from CryptoQuant reveal that long liquidations have remained larger and more frequent than short ones, showing an over-leveraged market still dominated by bullish bets. These liquidation waves have triggered cascading sell-offs, worsening the decline. Analysts warn that if such trends continue, Ethereum might revisit the $3,400 support area before stabilizing.
The persistent imbalance between longs and shorts suggests traders still expect a recovery, though this optimism could add pressure if prices drop again.
Ethereum Strengthens Its Share in Coinbase’s Ecosystem
Ethereum’s performance stood out during the quarter, capturing a larger portion of Coinbase’s overall trading activity. ETH accounted for 22% of total trading volume, rising from 15% in the previous quarter. Transaction revenue linked to Ethereum also increased to 17% from 12%. While Bitcoin maintained its lead in trading and transaction revenue, it experienced a slight decline in overall contribution as Ethereum gained momentum.
This expansion reflects growing investor confidence in Ethereum’s ecosystem, even amid short-term market turbulence. The network’s continued adoption within major exchanges highlights its central role in crypto trading dynamics.
Fusaka Upgrade Fuels Long-Term Confidence
Despite the near-term turbulence, Ethereum’s long-term fundamentals appear solid. Developers have confirmed that the highly anticipated Fusaka upgrade is scheduled for December 3, following its successful testnet completion. The update is designed to enhance scalability by optimizing data collection and verification from layer-2 chains.
Building on the earlier Dencun upgrade that introduced data “blobs” to lower transaction costs, Fusaka will expand block capacity for faster and cheaper network activity. This advancement is expected to strengthen Ethereum’s ecosystem and position it for sustained growth once current market headwinds subside.