Ethereum Faces Resistance as Liquidations Continue

Ethereum has been facing resistance near $2,900 after experiencing heavy liquidations in recent market activity. The price had dropped to $2,398 on September 17 but was defended by buyers at the $2,500 support area, allowing Ethereum to recover and push towards targets of $2,700 and $2,800.

Traders like EliZ warn that a 12-hour close below $2,500 would lead to a deeper decline in price. On the other hand, Trader Tardigo suggests that Ethereum formed a local top after its rebound from $1,510, placing a Fibonacci retracement target near $2,089.

The Layer 2 ecosystem currently holds more than $40 billion in total value locked across 73 active rollups, including Arbitrum at $15.9 billion and Base at $12.1 billion. The Friday market rout wiped out $2 billion in positions and drove Ethereum below $2,800, with over 185,000 Ether contracts worth approximately $525 million expiring during that session.

Max pain for Ether sat near $3,200, well above the $2,800 spot price recorded during the selling pressure. Large holders faced heavy losses, as on-chain monitors reported individual Ethereum liquidations between $3 million and $6.5 million.