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ETH Bulls Unmoved by Surprise Sell-Off Below $3.7K: Here’s Why

Ether plunged 9.5% to retest the $3,700 level, triggering roughly $232 million in leveraged long liquidations over 48 hours, but whale positioning suggests limited conviction in a deeper sell‑off. Derivatives metrics show caution rather than panic: the 25‑delta options skew spiked to 14% and the 30‑day futures premium slipped to about 4%, indicating traders are buying protection and avoiding heavy leverage. Banking credit worries and deteriorating US‑China ties are weighing on sentiment, and analysts say a sustained recovery toward $4,500 will hinge on clearer signals from credit markets and US labor data. The immediate risk is whether $3,700 holds as macroeconomic pressures intensify, leaving recovery prospects subdued for now.