Altcoin Liquidity Crisis: Why Is ETH Falling Today and XRP Struggling

Something massive is unfolding in the altcoin space — and it's not just another dip. According to Coin Bureau’s latest post, capital inflows into major altcoins have dropped by a staggering $46 billion since the last cycle.

Ethereum is crashing. XRP is under pressure. Is this the beginning of an altcoin liquidity crisis, or just a pause before the storm breaks out? Let’s explore why this could redefine bot hthe token's roles in the coming market.

Capital Outflow: $46B Hints at Altcoin Liquidity Crisis

The Coin Bureau called it — the altcoin liquidity crisis is real. Compared to previous cycles, capital inflows into major altcoins have shrunk dramatically.

Source: Coin Bureau X Account

While ETH once held the top altcoin throne, it’s now losing market share to Solana, and BNB leading to a potential power shift in the ecosystem.

This is not just a correction — it could be the start of a multi-chain liquidity war, with each chain competing for relevance and adoption.

Ethereum Crashes 10% in a Month — But Activity Is Exploding?

Let’s dive deeper into ethereum news today — and the signs aren’t encouraging on the surface.

At the time of writing, ETH is trading at $2,429.49, down nearly 10% in the past month. Trading volume has also taken a hit, with a 28.45% drop in the past 24 hours, sparking concerns over why is ETH falling today.

However, on-chain tells a different story. According to analyst Mister Crypto , its on-chain activity has surged 52.71% — over 20 million unique active addresses last week.

Source: X

Layer 2 growth is exploding with an 8.8x usage multiplier, signaling rising real-world utility despite the ethereum price crash.

ETH Technical Chart: Bounce Incoming or Bearish Trap?

A recent ETH/USD TradingView chart shows mixed momentum:

• MACD: Bullish crossover (momentum building)

• RSI: 49.85 and rising (neutral zone)

Despite recent pain, technicals point to a possible ETH price prediction bounce — but not without resistance. Unless ETH breaks above the $2,800–$3,000 resistance, the broader bearish trend remains.

Bottom Line: Upon reviewing the charts and data, I believe that it is alive on-chain but facing short-term price pressure right now.

XRP Faces Volatility: Price Slips, Liquidations Surge

While ETH bleeds slowly, it is riding a volatile wave. The price has dropped around 5% in the last month, and is currently trading near $2.18.

According to the XRP liquidation heatmap from Coinglass, long positions are being wiped frequently. Traders are expecting a breakout, but price action remains trapped in the $1.60–$2.10 range.

Source: Coinglass

Frequent liquidations signal both fear and mispositioned bets — a classic setup for a future price explosion or crash.

XRP Price Prediction 2025: Hammer Candles Signal Big Breakout

Crypto analyst EGRAG Crypto now sees an explosive upside coming. His technical model shows a bullish “hammer” candle pattern that previously led to 25–38% pumps.

Here’s what the hammers say:

• Candle 1: +25%

• Candle 2: +38%

• Candle 3: +38%

• Candle 4 (Now): Expected +33%, with a price target near $2.90–$3.00

But before the final XRP price prediction 2025 target , EGRAG crypto warns a pullback to $2.30 is likely — a key retest zone.

This is a crucial moment: Either this crypto news today will be bullish headlines — or it’ll become another failed breakout.

Ethereum & XRP — Losing the Crown or Quietly Reloading?

Are we witnessing the fall of Ethereum and XRP as dominant altcoins of season 2025 ? Maybe. But maybe not.

Ethereum is expanding in use while the price compresses, the other token is gearing for a breakout, as EGRAG's candles flash bullish green.

A $46 billion Altcoin liquidity crisis sounds like a death knell — but it could be the perfect setup for a comeback. Yes, altcoin ethereum and xrp news is full of fear right now. But the next few weeks may flip the script. Smart money watches what’s ignored.

Keep an eye on latest crypto market updates, as the next altcoin surge might already be brewing under the radar.