Ethereum News Update: Ethereum Faces $2,900 Test as $531 Million in Liquidations Threaten $10,000 Ambitions

Ethereum has experienced heightened price swings as it approaches pivotal points in its market path. According to Coinglass data from November 23,

(ETH) moving above $2,900 could result in $531 million worth of short positions being liquidated across leading centralized exchanges (CEXs). On the other hand, if the price dips below $2,700, it could trigger $988 million in long liquidations. These statistics underscore the delicate equilibrium in trader sentiment, with liquidation zones serving as both drivers and signals for price shifts. that the strength of these liquidation bands—reflecting areas of concentrated liquidity—may intensify price volatility as market participants rush to close leveraged trades.

Currently, Ethereum’s short-term outlook is bearish.

observes that buying momentum has faded, with bearish candles dominating on various timeframes. This trend raises the probability of a deeper pullback toward significant support zones. The fall below $2,800 has set off a negative feedback loop, with Binance outflows and liquidations adding to the downward momentum. data indicates substantial transfers from Binance to other platforms coincided with over $350 million in liquidations within 24 hours, worsening the decline. Ethereum could remain in a consolidation phase until a clear bottom is found.

Despite recent volatility, there is continued optimism for Ethereum’s long-term prospects. BitcoinWorld’s price forecast for 2025–2030

, fueled by Ethereum 2.0 upgrades, greater institutional involvement, and the deflationary effects following The Merge. The shift to proof-of-stake has reduced new ETH issuance, potentially creating deflationary pressure during periods of high network activity. By 2025, projections for ETH’s price range from $4,500 to $12,500, depending on broader economic trends and regulatory developments. A bullish scenario depends on the successful rollout of proto-danksharding and widespread adoption of layer-2 technologies, which could lower transaction fees and broaden Ethereum’s applications .

Institutional involvement further highlights Ethereum’s strategic importance. BitMine Immersion, a publicly listed crypto company, has accumulated 3.63 million ETH, with total crypto and cash assets valued at $11.2 billion. CEO Tom Lee has described Ethereum as “digital oil,” stressing its significance in securing billions in stablecoins and tokenized real-world assets. Meanwhile, the GENIUS Act—a proposed regulatory measure—could speed up Ethereum’s integration into mainstream finance by supporting peer-to-peer payments and asset transfers.

the rise in staking participation, which currently offers validators modest single-digit returns.

Ethereum’s ecosystem is also advancing with projects like Aztec’s fully decentralized Layer 2 (L2) network.

operates without centralized oversight, allowing for community staking and privacy-oriented transactions. This represents a significant step in Ethereum’s scaling journey, as L2 solutions become essential for supporting high-volume DeFi and Web3 platforms. With just 107.2 million AZTEC tokens staked at launch, the initiative seeks to build liquidity through a token sale of 1.547 billion tokens at a 75% discount compared to previous valuations .

Nonetheless, Ethereum is not without challenges. Outflows from ETFs have removed $3.79 billion from U.S.-listed spot BTC and ETH funds in November alone, reflecting declining institutional confidence. The recent breach of major support levels has also sparked worries about overall market sentiment. While Ethereum’s deflationary structure and technical progress remain attractive, uncertainties such as regulatory risks and competition from other L1 chains like

could slow its journey to $10,000. to keep an eye on liquidation clusters and institutional flows as important indicators of short-term stability.