Ethereum Sinks Below $1,600 in Overnight Crypto Crash
An Ethereum coin symbol with a red market graph in the background, reflecting the overnight price drop.
Ethereum’s price took a steep dive late last night. It briefly crashed below the $1,600 mark — hovering around $1,570 at one point — after tumbling more than 13% within 24 hours. In the process, roughly $160 billion in value was wiped out from the overall cryptocurrency market, as almost every major crypto coin turned red alongside Ethereum’s fall.
In other words, it wasn’t just ETH feeling the pain; the entire crypto market saw about a 6% drop in total value in a single day. Trading activity jumped dramatically during the sell-off. Ethereum’s 24-hour trading volume surged by nearly 300%, a sign of panic selling and large players moving funds fast.
Just days ago, ETH was slowly climbing toward $1,950, with signs of a potential rally. But that optimism vanished quickly once sellers piled on. It’s a sharp reminder of how fast things can change in crypto — one week, there’s talk of a bull run, and the next, everyone’s looking for the bottom.
What Caused the Crash?
This wasn’t caused by any single event inside Ethereum’s ecosystem. Instead, a few broader market forces came together to spark a sharp sell-off.
Global Market Jitters
The crypto crash lined up with growing anxiety in global markets. New trade war tensions — especially U.S. President Donald Trump’s latest tariff threats — spooked investors. With over 50 countries reacting, financial markets were rattled. As a result, many investors pulled money out of risky assets like crypto and stocks at the same time.
Bitcoin Led the Slide
Bitcoin, the largest and most influential crypto, dropped first — sliding from about $83,000 to $78,000 over the weekend. Ethereum followed just minutes later, along with other major altcoins like Solana and XRP. Bitcoin’s slump essentially triggered a domino effect across the market.
Panic Selling and Liquidations
As prices fell, fear took over. The popular “Fear and Greed Index” dropped to “Extreme Fear” levels — the lowest in months. Many traders had placed leveraged bets expecting ETH to rise. As the price fell, these positions were automatically liquidated, triggering a cascade of forced selling.
Over 280,000 traders were liquidated in a 24-hour period, with losses totaling around $853 million. Most of those were long positions — people betting Ethereum and Bitcoin would rise. These automatic sell-offs only made the fall steeper, and even strong coins like ETH were caught in the spiral.
What's next for Ethereum?
Right now, Ethereum is hovering around $1,550 — a key support level. If it manages to hold here, we could see a small bounce or stabilization. But if it drops below $1,550, the next potential floor is around $1,450. Some analysts even point to $1,200 as a worst-case scenario if the selling pressure continues.
That said, crypto markets are known for rebounding after sharp drops. Some industry veterans are urging calm. Cardano founder Charles Hoskinson reminded investors that every crash feels “hopeless and broken,” but that markets do eventually recover. He even predicted that the next bull phase will be “spectacular,” though it may come after a bumpy ride.
Others in the space echoed this sentiment: it’s not the first crash, and it won’t be the last. What happens next depends on whether confidence returns — and whether buyers step back in.
The Marginfall Take
Markets shift like seasons. And in crypto, winter can arrive overnight. This drop is big. But our job at Marginfall is to explain the storm — not hype it up, not downplay it. Just clear, honest coverage. Ethereum is down. But the need for transparency is up. Stay with us. This is another Marginfall.But honestly, we don't know tho.
