Ethereum (ETH) struggles to exceed $4,200 after a sharp sale has caused widespread liquidation across the crypto market. It fell almost 9% over the past week, with traders helping to retest potential at the $4,100 level.
Coinglass data shows that over $178 million positions have been settled in the last 24 hours, bringing ETH long traders to the biggest hit and wiped out more than $127 million.
In a notable case, one high lipid trader lost nearly $6.2 million after aggressively re-entering ETH Long, losing significant months’ profits within just two days.
This volatility marks a wave of supply that could put more pressure on prices as the Ethereum exit queue for withdrawals surged to 910,461 ETH, worth around $3.91 billion.
ETH prices lose momentum on the daily charts. sauce: TradingView’s Ethusd
Institutional investors intervene despite market anxiety
Despite the pain of retail, players at large institutions seem to be buying dip. Bitmine Immersion, the largest publicly traded ETH owner, recently added 52,475 ETH, bringing its holdings to nearly $6.6 billion.
Sharplink followed suit, buying 143,593 ETH for $4,648, but is now underwater.
Blockchain trackers have also flagged new influxes from Falconx-related wallets, exceeding $38 million. This suggests that while short-term emotions remain unstable, large-money investors continue to accumulate ETH by betting on their long-term value.
Ethereum (ETH) analysts warn of deeper losses before recovery
Market experts should note that Ethereum may be under pressure as macroeconomic uncertainty looms ahead of the US Federal Reserve Jackson Hole Conference. A pessimistic tone from Fed Chairman Jerome Powell could spark more risky feelings across the code and stock.
Chain activity is also weakened. Active Ethereum addresses fell nearly 28% in August, with retail participation declining. The network has also slowed down, raising questions about short-term demand.
Still, analysts see the long-term benefits when the market absorbs $4 billion of unstaking. Some forecasts remain bullish, with Ethereum projected to reach $6,000-$8,000 per year end if institutional flow continues.
But for now, there are still important issues. Can ETH protect $4,000 or can it supply pressure and drag it into a deeper correction?
ChatGpt cover image, TradingView’s Ethusd chart