🚨 Ethereum Is Getting Hammered — Stay Away for Now

$ETH

Ethereum is in full meltdown mode — and Wall Street isn’t stepping in to save it.

Crypto analyst aixbt sounded the alarm on X, warning that $ETH is getting wrecked right now. In just 7 days, Ethereum has plunged 25%, breaking below $2,300 with momentum pointing lower. This isn’t a quick dip — it’s a structural unwind.

💥 Liquidation Chaos Meets ETF Bloodbath

The selloff turned violent fast.

$227 million in $ETH long positions were wiped out in a single hour

Nearly every major U.S. Ethereum ETF is bleeding

Fidelity and Franklin Templeton alone saw –$54.8M each in outflows

BlackRock dumped 35,000 ETH straight onto Coinbase Prime

That’s not retail panic — that’s institutional money heading for the exits.

The message is clear: big players are de-risking, leverage is getting flushed, and confidence is cracking.

🧱 The Layer-2 Dream Is Unraveling

One of Ethereum’s biggest bull narratives just hit a wall.

For years, Layer-2s were pitched as Ethereum’s scaling savior. Now even Vitalik Buterin admits L2s aren’t progressing fast enough toward full decentralization (Stage 2). Meanwhile, the original “branded shards” roadmap is effectively dead as Layer-1 scaling outperformed expectations.

Translation?

The L2 Summer hype is fading, and the market is repricing Ethereum without that growth story.

📉 This Isn’t 2018 — But It’s Still Ugly

Some are calling this a 2018-style capitulation. The comparison sounds dramatic, but the mechanics are different.

In 2018: ICO collapse, no infrastructure

In 2026: Mature ecosystem, real usage, but profit-taking + narrative shift

ETH is now down ~54% from its August all-time high, and while the tech is still there, the trade is broken — for now.

🔮 What Happens Next?

Ethereum’s near-term future hinges on three things:

ETF flows turning positive

Excess leverage fully flushed

$2,200 support holding

If $2,200 breaks, lower levels are likely. If it holds and flows stabilize, a short-term relief bounce could happen — but don’t confuse that with a full recovery.

For now, Ethereum is under serious pressure, and the risk-reward favors patience, not hero buys.

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