Ethereum price retraced sharply as surging liquidations, whale selling, and a shift in market sentiment pushed the crypto market into fear territory.
Summary
- Ethereum dropped below $4,200, down 6.8% in 24 hours, with volume surging 124% to $32.5B.
- Derivatives activity spiked, but open interest fell as $495M in positions were liquidated.
- Technicals show ETH testing support near $4,160, with resistance at $4,400–$4,500.
As of this writing, Ethereum is down 6.8% over the past day, trading at $4,173. With a 7-day range of $4,206 to $4,659, the asset has lost 10% over the last week and 12% over the last 30 days.
The sell-off coincides with a sharp uptick in trading activity. Ethereum’s (ETH) 24-hour volume jumped 124% to $32.5 billion. Derivatives trading mirrored the surge, with volumes spiking 183% to $93.8 billion, according to Coinglass data. However, open interest fell 5.2% to $60.2 billion, showing that traders are closing positions rather than adding new ones.
The imbalance was evident in liquidations, where $495 million in ETH positions were wiped out in the past day, with long traders absorbing $478 million of the losses.
Sentiment weakens as whales sell
For the first time this month, the market entered “fear” territory as the Crypto Fear & Greed Index fell four points to 46. Some large holders were seen moving their coins to exchanges, according to on-chain data, which indicates an increase in sell-side pressure from whales. This implies that short-term price action is being driven by risk-aversion and profit-taking.
The Federal Reserve’s 0.25% rate cut last week, which was the first in nearly a year, had previously caused Ethereum to rise. That spike briefly pushed ETH toward $4,700 before the recent decline. September has historically been one of the worst months for cryptocurrency returns, and the most recent reversal appears to follow that trend.
Despite immediate pressures, catalysts such as the Fusaka upgrade and increased institutional access via exchange-traded funds and corporate treasuries could boost the market into Q4. Some analysts continue to forecast a run above $5,000 before year-end if macro conditions level off.
Ethereum price technical analysis
The short-term bearish trend has been reinforced by ETH’s technical break below its 20-day moving average. Both the momentum and the MACD indicators are in sell territory, and the relative strength index is near 40, getting close to oversold but not quite stretched.
Bollinger Bands show price testing the lower band near $4,160, which aligns as immediate support. Immediate support sits at $4,150, with a break potentially exposing $3,800. On the upside, ETH would need to reclaim the $4,400 level to revive bullish sentiment. A decisive move above $4,500 could open the path back toward $4,700.