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Ethereum Updates Today: Crypto Faces $1.16B Liquidation Turmoil—Is This a Setback or a New Beginning for Ethereum?

Ethereum Updates Today: Crypto Faces $1.16B Liquidation Turmoil—Is This a Setback or a New Beginning for Ethereum?

Bitget-RWA2025/11/04 15:16
By:Bitget-RWA

- In Nov 2025, crypto markets crashed as ETH fell below $3,600 amid macro pressures, DeFi hacks, and $1.16B in liquidations. - Trader Eugene took a long ETH position during the dip, aligning with analysts' cautious optimism about Ethereum's fundamentals. - A $128.6M Balancer protocol hack and $1.34B in ETF outflows exposed systemic vulnerabilities, triggering risk-off sentiment. - A weekend rebound added $33B in value temporarily, but analysts called it a "relief rally," not a sustained recovery. - Hong Ko

In early November 2025, the cryptocurrency sector experienced a significant downturn, as

(ETH) fell below $3,600 due to macroeconomic headwinds, a major DeFi hack, and widespread profit-taking. This wave of selling led to $1.16 billion in liquidations, with long trades making up $273 million of the total, according to a . Amid this volatility, trader Eugene took a contrarian approach by opening a long position on ETH during the decline, echoing analysts’ guarded optimism about Ethereum’s long-term prospects.

The market slump, which reduced the total crypto market value to $3.69 trillion, was fueled by several overlapping factors.

(BTC) dropped below $108,000, and Ethereum’s losses wiped out nearly a quarter’s worth of gains, as highlighted by FinancialContent. The turbulence revealed the market’s vulnerability, with institutional investors withdrawing $1.15 billion from US spot Bitcoin ETFs the week before and another $191 million on November 3. At the same time, the protocol was hacked for $128.6 million, intensifying concerns about DeFi’s systemic risks and prompting a broader risk-off mood.

Ethereum Updates Today: Crypto Faces $1.16B Liquidation Turmoil—Is This a Setback or a New Beginning for Ethereum? image 0

Despite the chaos, the market saw a brief recovery over the weekend as traders bet on a short-term stabilization. Within six hours, the global crypto market cap increased by $33 billion, with Ethereum climbing back to $3,850 and

jumping 11% to reclaim the fourth spot by market value, according to an . Experts linked this bounce to short liquidations and shifts in institutional positioning, though the Economic Times noted it was more of a "relief rally" than a sign of lasting recovery.

Eugene’s choice to go long on ETH during the downturn mirrors a tactic used by some investors who interpret the correction as a "healthy reset" after a period of rapid growth. "The broader economic outlook still favors future upside," said crypto analyst Lark Davis, even as he recognized the ongoing "persistent selling and anxiety," according to FinancialContent. Key factors to watch include institutional engagement and regulatory developments, with Hong Kong recently loosening crypto rules to draw international participants and boost liquidity, as reported by

. Allowing licensed platforms in the city to tap into global liquidity pools could strengthen the market, while innovations like LSEG’s vLEI-based identity system are designed to enhance compliance in digital asset transactions, as outlined in a .

Looking forward, the market is divided between those who are cautious in the short term and those who remain optimistic about the long run. Bitcoin’s ability to maintain crucial support levels, such as $100,000, will be pivotal, while broader economic trends—including the Federal Reserve’s interest rate policies—will continue to influence sentiment, FinancialContent added. For traders like Eugene, the ETH position highlights the value of dollar-cost averaging and a long-term approach, even as volatility and regulatory ambiguity persist.

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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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