Ethereum dips below $4,000 sparking $183 million losses for traders
Ethereum has slipped to its lowest level in nearly two months, marking a sharp reversal after weeks of steady accumulation and new all-time highs.
According to CryptoSlate data, ETH briefly fell to $3,993 on Sept. 25 before recovering slightly to trade around $4,030 at press time. The decline reflects a 4% daily drop and caps off a turbulent week in which the asset shed nearly 13% of its value.
This latest move also deepens Ethereum’s month-long slide. ETH has lost about 10% in September and is now 18.44% below its recent record high of $4,946.
The price performance is not entirely surprising, as analysts had warned that Ethereum looked increasingly fragile despite its recent rally.
Timothy Misir, the head of research at BRN, told CryptoSlate that unless ETH could reclaim the accumulation band that fueled its climb to $4,650, the token risked slipping into a “psychological and technical void.”
That prediction is currently playing out, with its price action consolidating just above the $4,000 support level.
Meanwhile, the latest selloff has triggered painful liquidations across leveraged positions.
CoinGlass data shows that Ethereum traders speculating on the digital asset price lost more than $183 million to the price volatility in the last 24 hours.
Additionally, blockchain analytics firm Lookonchain reported that a trader with the wallet 0xa523 saw his 9,152 ETH (worth $36.4 million) long position wiped out after prices dipped below $4,000. The loss added to his prior liquidations, leaving him with just under $500,000 from what was once a portfolio exceeding $45 million.
Whales and institutional ETH accumulation continue
Yet, while some traders face steep losses, others are seizing the opportunity to buy.
Lookonchain noted that 11 wallets accumulated 295,861 ETH, valued at $1.19 billion, from major exchanges and OTC desks, including Kraken, Galaxy Digital, BitGo, and FalconX.
Apart from that, ETH has continued to record significant institutional accumulation over the past months.
Data from the Strategic ETH Reserve shows that corporate treasuries expanded their ETH positions from just $2 billion in July to over $21 billion in September, making ETH the fastest-growing treasury asset.
This trend reflects continued whale and institutional confidence in Ethereum’s long-term trajectory, even as short-term volatility shakes out weaker hands.
The post Ethereum dips below $4,000 sparking $183 million losses for traders appeared first on CryptoSlate.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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