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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