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Ethereum has fallen to its lowest point in almost two months, indicating a significant reversal following weeks of consistent accumulation and new all-time highs.
As per data from CryptoSlate, ETH briefly dropped to $3,993 on September 25 before slightly recovering to around $4,030 at the time of reporting. This decline represents a 4% decrease in a single day and concludes a tumultuous week during which the asset lost nearly 13% of its value.
This recent movement further exacerbates Ethereum’s month-long downturn. ETH has decreased by approximately 10% in September and is currently 18.44% below its recent peak of $4,946.
The price trend is not entirely unexpected, as analysts had cautioned that Ethereum appeared increasingly vulnerable despite its recent surge.
Timothy Misir, the head of research at BRN, informed CryptoSlate that unless ETH can regain the accumulation zone that propelled its rise to $4,650, the token risks descending into a “psychological and technical void.”
This forecast is presently unfolding, with its price action stabilizing just above the $4,000 support threshold.
In the meantime, the recent selloff has resulted in significant liquidations across leveraged positions.
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Data from CoinGlass indicates that Ethereum traders speculating on the asset’s price experienced losses exceeding $183 million due to the price fluctuations in the past 24 hours.
Moreover, blockchain analytics firm Lookonchain reported that a trader with the wallet 0xa523 had his 9,152 ETH (valued at $36.4 million) long position eliminated after prices fell below $4,000. This loss compounded his earlier liquidations, leaving him with just under $500,000 from what was once a portfolio worth over $45 million.
Whales and institutional ETH accumulation continue
However, while some traders are enduring substantial losses, others are taking advantage of the situation to purchase.
Lookonchain observed that 11 wallets accumulated 295,861 ETH, worth $1.19 billion, from major exchanges and OTC desks, including Kraken, Galaxy Digital, BitGo, and FalconX.
In addition, ETH has continued to see considerable institutional accumulation over recent months.
Data from the Strategic ETH Reserve reveals that corporate treasuries increased their ETH holdings from just $2 billion in July to over $21 billion in September, establishing ETH as the fastest-growing treasury asset.
This trend signifies ongoing whale and institutional confidence in Ethereum’s long-term prospects, even as short-term volatility shakes out weaker participants.
The post Ethereum dips below $4,000 sparking $183 million losses for traders appeared first on CryptoSlate.
