Ethereum was hit by a double whammy last night: political turmoil + Get Liquidated.

The US government is about to shut down again, as the Senate failed to finalize the funding bill last Friday. As soon as this news broke, global capital immediately fled from risk assets. Ethereum came under pressure, with a total liquidation of $103 million across the network within an hour, and $29.53 million of that was just ETH, with long positions being the hardest hit.

Timeline:
1:31 AM → Short news focuses, the market begins to panic
2:00 AM → Ether plummeted from $3373, triggering a chain of Get Liquidated.
2:32 AM → Key support at $3300 broken, stop-loss avalanche
2:35 AM → Dropped to a low of 3255 USD, a decline of 3.46% in one hour.
3:00 AM → Bounced back to $3305, but market sentiment hasn't eased yet.

The technical outlook is also grim: the price is touching the lower Bollinger Band, with the 5/10/20-day moving averages all pressing down. The EMA20 and EMA120 have bearish slopes of -1.83% and -0.65% respectively. Although there are rebound signals in the oversold area of the KDJ, the new low in OBV indicates that selling pressure is still present. Trading volume surged by 53.53%, with both retail and institutional investors panicking.

What’s the bottom line? As long as this matter is not resolved by the U.S. government, risk aversion will suppress the crypto market. We still need to keep a close eye on the support below $3300. There is a probability of a short-term rebound, but before the macro pressure is lifted, don’t be too optimistic.