Ethereum sank to $2,100 on May 18, a 12% monthly plunge that triggered $256 million in liquidations. Bitmine Chairman Tom Lee called rising oil prices the main culprit, noting an all-time high inverse correlation. The ETH/BTC pair meanwhile hit a 10-month low, signaling deepening market unease.
Oil Tied to ETH's Slide
Crude and Ethereum moved in lockstep last week. Lee said the correlation has never been stronger. When oil spiked, ETH sold off harder. It's a short-term pressure the Bitmine chief sees as temporary. But it hurt traders when it mattered most.
The $256 Million Wipeout
May 18 brought brutal liquidations across ETH positions. The $256 million figure came as geopolitical tensions flared after Trump's comments about Iran. That comment sparked a broader market sell-off. Traders got caught in the crosshairs. Many had leveraged long positions that couldn't hold.
Bearish Bets Take Over
High-leverage longs shrank to $600 million that same day. Short positions ballooned to $6.3 billion. That's a massive shift in market sentiment. It shows how many now expect ETH to keep falling. The pressure hasn't let up since Tuesday's selloff.
Gaps and Long-Term Hope
Three unfilled CME gaps stretch from $2,200 to $3,200. A new gap formed near $2,200, reducing technical downside risks. Lee still backs ETH long-term. He points to tokenization of real-world assets and agentic AI as drivers through 2026. The market's immediate focus remains that $2,200 level.
