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November 21, 2025

ETH Tests $2,850 After Treasury Sales; Liquidations Top $170M

Market snapshot

Ethereum (ETH) is trading under pressure after significant sales from a digital‑asset treasury and a larger liquidation event across crypto markets. Over the past 24 hours, crypto liquidations approached $170 million (about $142.8M in long liquidations per Coinglass), and ETH is testing critical support near $2,850. Institutional treasury activity and elevated leverage are now the dominant drivers of short‑term price action; see analysis of broader ETH downside risks for related derivatives and ETF context.

What happened: treasury sales and buybacks

FG Nexus (FGNX) disclosed it sold 10,922 ETH and used the proceeds, plus a $10 million loan, to repurchase 3.4 million shares at roughly $3.45. The fund now reports a treasury of 40,005 ETH and about $37 million in cash/USDC. The disclosure highlights a broader dynamic: some treasuries are funding buybacks with digital‑asset sales. That reallocation increases short‑term supply in ETH markets and amplifies downside risk when leverage is elevated; this contrasts with periods of heavy institutional accumulation.

Technical outlook for ETH

Key levels to watch:

Downside

- Immediate support: $2,850 (current test). A decisive breach would expose a larger move toward the $2,300 area as liquidations cascade.

Upside

- Near resistance: $3,100 and the 20‑day EMA. Clearing this cluster would open a technical path toward $3,470.

Momentum indicators (RSI and Stochastic) are in oversold territory on short‑term charts, so a tactical bounce around current support is plausible. However, oversold readings can persist in strong downtrends, especially when institutional sellers continue to add supply.

Market risks and catalyst watchlist

Main risks for bullish scenarios:

  • Repeated or additional ETH sales by treasuries creating persistent sell pressure.
  • A decisive break below $2,850 triggering cascade liquidations toward $2,300.
  • Macro or liquidity shocks that force further deleveraging in crypto markets.

Potential catalysts for recovery include a quick reduction in liquidation flows, constructive on‑chain demand such as improved stablecoin flows, or a technical reclaim of the 20‑day EMA and $3,100 resistance.

Trading implications and tactical ideas

For short‑term traders:

  • Consider fading intraday extremes while keeping stops tight—expect swift, volatility‑driven moves. A bounce off $2,850 could offer a quick mean‑reversion scalp toward $3,100, but only with clear rejection of lower prices.
  • If $2,850 breaks, avoid aggressive longs and look for entries nearer $2,300 with layered buys and defined risk; a confirmed trend change is required before adding size.

For swing or position traders:

  • Wait for a reclaim of the 20‑day EMA and $3,100 with improving volume before initiating new long exposure. Use macro risk controls and staggered entries.
  • Hedging with options or reducing leverage can protect portfolios against large liquidation shocks.

How to manage trades with automation

High intraday volatility and round‑the‑clock markets make automated trading and monitoring useful. Automated trading systems can enforce discipline (predefined stops, dynamic position sizing, and systematic entry/exit rules) when emotions run high. Retail traders looking to maintain 24/7 risk management may explore a dedicated crypto assistant or exchange‑specific automation — for example, integrating strategies with a Binance trading bot for spot and perpetual execution, or using the trade assistant to automate risk controls and alerts.

Whether you trade crypto or forex, automated rules reduce execution slippage and help maintain consistency across fast moves. If you also trade currency pairs, combining automated signals with manual discretion can bridge crypto trading and forex trading exposures.

Risk management checklist

Before taking a new ETH trade, confirm the following:

  • Defined stop loss and position size relative to account risk.
  • Liquidity and funding considerations for margin or perpetual positions.
  • Plan for adverse scenarios (e.g., cascade liquidations below $2,850).
  • Use of automation for 24/7 monitoring or to execute time‑sensitive hedges.

Conclusion

ETH’s test of $2,850 after treasury sales and a $170M liquidation event creates a high‑volatility environment where both downside risk and short‑term bounce opportunities exist. Traders should prioritize risk controls, watch the $2,850 and $3,100/20‑day EMA levels for confirmation, and be prepared to scale positions rather than take large one‑off bets.

For traders seeking to apply systematic rules to these conditions, tools that support automated trading, real‑time execution, and backtested strategies can help. If you want to operationalize these ideas, try the automation tools at PlayOnBit — whether you’re optimizing crypto trading execution on Binance or building disciplined strategies with an AI‑driven assistant. PlayOnBit’s platform supports AI trading bot workflows that help execute and monitor positions across volatile markets.

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