Ethereum, the second-largest cryptocurrency by market capitalization, has experienced a significant downturn, hitting its lowest level in nearly two months. The price of ETH briefly dropped to $3,993 on Sept. 25, before rebounding slightly to trade around $4,030 at the time of writing. This 4% daily decline follows a turbulent week where Ethereum lost nearly 13% of its value.
Throughout the month of September, Ethereum has seen a steady decline, with a total loss of about 10% and now standing 18.44% below its recent all-time high of $4,946. Analysts had been warning of Ethereum’s vulnerability despite its recent rally. Timothy Misir, the head of research at BRN, cautioned that unless ETH could reclaim its accumulation band that propelled it to $4,650, the token was at risk of falling into a “psychological and technical void.” This prediction seems to be unfolding as Ethereum’s price hovers just above the $4,000 support level.
The recent selloff has triggered significant liquidations in leveraged positions. According to CoinGlass data, Ethereum traders lost over $183 million due to price volatility in the last 24 hours. Additionally, a trader holding 9,152 ETH (worth $36.4 million) in the wallet 0xa523 saw his long position wiped out as prices dipped below $4,000, adding to his previous liquidations and leaving him with just under $500,000.
Despite the losses faced by some traders, others are taking advantage of the price drop to accumulate more Ethereum. Eleven wallets were identified by Lookonchain as accumulating 295,861 ETH, valued at $1.19 billion, from major exchanges and OTC desks. Institutions have also been increasing their ETH holdings, with data from the Strategic ETH Reserve showing corporate treasuries expanding their positions from $2 billion in July to over $21 billion in September, making ETH the fastest-growing treasury asset.
This ongoing institutional and whale accumulation reflects confidence in Ethereum’s long-term potential, even amidst short-term price volatility. As the cryptocurrency market continues to evolve, it is essential for investors to stay informed and make strategic decisions based on the latest developments and trends.