After a period of sustained growth and reaching unprecedented peaks, Ethereum has experienced a downturn, hitting its lowest price point in nearly two months.
Information sourced by CryptoSlate indicates that the price of ETH momentarily dipped to $3,993 on September 25th, before rebounding slightly to around $4,030 at the time of this report. This decline represents a 4% decrease in a single day, concluding a volatile week where the asset’s value diminished by almost 13%.
This recent movement intensifies Ethereum’s ongoing downward trend throughout September. The value of ETH has decreased by approximately 10% this month and is now 18.44% lower than its recent high of $4,946.
This price action isn’t altogether unexpected, as analysts had previously suggested that Ethereum’s position appeared increasingly shaky, despite its previous upward momentum.
Timothy Misir, Research Head at BRN, stated to CryptoSlate that if ETH couldn’t regain the accumulation zone that propelled its ascent to $4,650, the digital currency risked entering a “psychological and technical danger zone.”
This prediction is currently unfolding, with the asset’s price stabilizing just above the $4,000 support level.
Concurrently, this latest wave of selling has resulted in significant liquidations of leveraged positions.
Data from CoinGlass reveals that Ethereum traders who were speculating on price increases lost over $183 million due to the price fluctuations within the last 24 hours.
Furthermore, Lookonchain, a blockchain analytics firm, reported that a trader with the wallet address 0xa523 had their long position of 9,152 ETH (valued at $36.4 million) completely liquidated when prices fell below $4,000. This loss compounded previous liquidations, leaving the trader with just under $500,000 from what was once a portfolio worth over $45 million.
Continued Acquisition of ETH by Whales and Institutions
Despite the substantial losses faced by some traders, others are taking advantage of the situation to purchase more Ethereum.
Lookonchain pointed out that 11 wallets accumulated 295,861 ETH, equivalent to $1.19 billion, from prominent exchanges and over-the-counter (OTC) platforms, including Kraken, Galaxy Digital, BitGo, and FalconX.
Moreover, ETH has consistently demonstrated significant institutional accumulation in recent months.
Information from the Strategic ETH Reserve indicates that corporate treasuries have increased their ETH holdings from $2 billion in July to over $21 billion in September, making ETH the fastest-growing asset held in corporate treasuries.
This trend showcases continued confidence in Ethereum’s long-term future from large investors and institutions, even as short-term volatility impacts less resilient investors.