Cryptocurrency markets faced a turbulent November 17th, as both Bitcoin and Ethereum experienced significant price corrections and cascading liquidation events. The selloff pushed Ethereum below a critical psychological support level, while Bitcoin tested a key support zone, indicating a broader market deleveraging across the digital asset landscape.
Ethereum Breaches Key Support
Ethereum saw a notable decline, briefly trading below the crucial $3,000 mark. This breach triggered substantial liquidations totaling $50.7 million, predominantly affecting short positions. The digital asset currently hovers around $3,019, representing a 2.36% daily decline and a significant 37% drop from its October peak of approximately $4,800. Technical indicators, such as the Relative Strength Index (RSI) at 31.09, signal deeply oversold conditions, yet recovery efforts face formidable resistance walls, particularly between $4,000 and $4,400 where heavy trading activity previously occurred.
Bitcoin Tests Vital Ground
Bitcoin also endured a sharp correction, testing support near $92,000 and incurring $18.2 million in liquidations. The flagship cryptocurrency traded down 2.24% on the day, now at $92,071, and has shed roughly 27% from its October high of around $127,500. Like Ethereum, Bitcoin's RSI has plummeted to 28.77, indicating extreme oversold conditions. However, its path to recovery is obstructed by significant resistance zones, notably between $110,000 and $112,000, and it would need to reclaim the $100,000 level to shift near-term sentiment.
Broader Market Deleveraging and Outlook
The coordinated downturn in both major cryptocurrencies points towards a market-wide deleveraging rather than asset-specific weakness, with overleveraged long positions bearing the brunt of the liquidations. While the deeply oversold conditions across both assets suggest the potential for short-term bounce attempts, the robust volume profile resistance zones indicate that any significant recovery will face considerable technical hurdles. Traders are closely monitoring whether current support levels can hold or if further capitulation will drive prices lower, potentially towards $88,000 for Bitcoin and $2,800 for Ethereum.
