Ethereum has been absolutely demolished lately ๐.
An urgent update from aixbt on X sounded the alarm โ and the numbers are ugly.
In just 7 days, $ETH is down ~25%, now trading below $2,300 ๐ฅ.
This isnโt a casual dip or quick shakeout. The selling pressure is deep, aggressive, and structural.
๐ฃ Liquidation Cascade + ETF Bleeding
The selloff turned violent fast:
๐ป $227 million in ETH longs liquidated in just ONE hour โฑ๏ธ๐ฅ
๐ป Every major Ethereum ETF is bleeding โ except iShares ๐ฉธ
Fidelity: โ$54.8M
Franklin: โ$54.8M
๐ป BlackRock dumped 35,000 ETH straight onto Coinbase Prime ๐ฆโก๏ธ๐
This is a clear signal:
๐ Institutional demand is weakening
๐ฅ Retail leverage is getting flushed
ETF outflows + forced liquidations = confidence is breaking.
๐งฉ The L2 Narrative Is Cracking
One of the biggest pillars of the $ETH bull case is now wobbling hard ๐ซจ.
โ ๏ธ Vitalik Buterin admitted L2s arenโt reaching Stage 2 fast enough
โ ๏ธ The original โbranded shardsโ vision is effectively dead
โ ๏ธ Layer 1 scaling has improved faster than expected, making parts of the L2 story less compelling
This is not the bullish update investors wanted ๐ฌ.
The hype around โL2 Summerโ is fading, forcing a narrative reset across the market ๐.
๐ฐ๏ธ This Is NOT a 2018-Style Capitulation
Yes, comparisons to 2018 are floating around โ but the mechanics are different โ.
๐ In 2018:
ICO hangover
Weak infrastructure
Few real use cases
๐ In 2026:
Mature ecosystem
L2s, DeFi, real protocols, real users
Strong infrastructure already in place
Whatโs happening now is:
๐ Profit-taking after a massive run-up
๐ง Narrative shift around scaling
ETH is still down ~54% from its August all-time high, but this looks more like a broken trade + sentiment reset, not ecosystem failure.
๐ฎ Whatโs Next for Ethereum?
The path forward depends on a few critical factors ๐
โ ETF flows turning positive again
โ Leverage fully flushed from the system
๐ Key support to watch: $2,200
๐ป If $2,200 breaks โ lower levels likely
๐บ If it holds + flows stabilize โ possible dead-cat bounce ๐ฑ๐
๐ง Bottom Line
Ethereum is in serious pain right now ๐.
The infrastructure still exists โ but sentiment is broken, leverage is being wiped out, and narratives are shifting fast.
Until the market resets, the short-term outlook remains bleak โ ๏ธ
Survival now matters more than hype.
#ETHETFS #Ethereum #ETHdown #ETHEFTS
