Ethereum (ETH) is struggling to hold above $4,200 after a sharp sell-off triggered widespread liquidations across the crypto market. It has dropped nearly 9% over the past week, with traders bracing for a potential retest of the $4,100 level.
Data from CoinGlass shows that more than $178 million in positions were liquidated in the past 24 hours, with ETH long traders suffering the biggest blow, over $127 million wiped out.
A notable case saw one Hyperliquid trader lose nearly $6.2 million after re-entering ETH longs too aggressively, turning months of gains into heavy losses within just two days.
This volatility comes as Ethereum’s exit queue for staking withdrawals has surged to 910,461 ETH, worth about $3.91 billion, signaling an upcoming wave of supply that could pressure prices further.
SharpLink followed suit, purchasing 143,593 ETH at $4,648, though its position is now underwater.
Blockchain trackers also flagged new inflows from FalconX-linked wallets worth over $38 million. This suggests that while short-term sentiment remains shaky, big-money investors continue to accumulate ETH, betting on its long-term value.
On-chain activity has also weakened. Active Ethereum addresses have dropped nearly 28% in August, signaling waning retail participation. Network growth has slowed as well, raising questions about near-term demand.
Still, analysts see long-term upside once the market absorbs the $4B staking unlock. Some forecasts remain bullish, with Ethereum projected to reach between $6,000–$8,000 by year-end if institutional flows persist.
For now, however, the critical question remains: can ETH defend $4,000, or will supply pressure drag it into a deeper correction?
Cover image from ChatGPT, ETHUSD chart from Tradingview
