- Ethereum traded as low as $3,999 on Thursday before recovering to $4,037, reflecting a 2.91% decline over the past 24 hours.
- The price drop triggered over $1.7 billion in altcoin liquidations, with ETH accounting for $212.9 million.
- Spot Ethereum ETFs recorded only $110 million in net inflows this September, a sharp drop from $3.8 billion in August.
- On-chain data indicates over 420,000 ETH withdrawn from exchanges this week, signaling potential accumulation and a supply shock.
Ethereum has slipped below the psychologically significant $4,000 mark for the first time since early August, as broader economic concerns and a slowdown in ETF investments pressure the market.
The decline was fueled by cascading liquidations after failing to hold the $4,200 support zone. This comes amid macroeconomic jitters, including the U.S. Federal Reserve’s recent 25 basis point rate cut, which did not lead to a sustained rally following Chair Jerome Powell’s cautious remarks on future cuts.
Slowing ETF Momentum: Investor interest in spot Ethereum ETFs has waned, with September inflows totaling just $110 million compared to over $3.8 billion in August. This shift highlights a more risk-averse environment among institutional players.
However, on-chain indicators suggest underlying strength. Exchange balances have hit nine-year lows, with significant withdrawals indicating that whales and retail investors are opting for self-custody and staking rather than selling. This could prelude a supply shock, potentially supporting future price recovery.
Rachael Lucas, crypto analyst at BTC Markets, commented: “Ethereum’s recent dip below the psychological $4K mark was triggered by a mix of technical breakdowns, macroeconomic jitters, and cascading liquidations.”
Nassar Achkar, Chief Strategy Officer at CoinW, noted: “[This underscores] a profound shift toward long-term holding amid growing institutional confidence. This sustained outflow signals a potential supply shock on the horizon.”
Market sentiment on X shows a blend of caution and opportunity. Posts highlight whale accumulation of $561 million in ETH during the dip, with some viewing it as a buying signal amid liquidations. Others express concerns over further drops but anticipate a rebound.
In related market developments, Bitcoin also dipped below $113,000 recently, with Ethereum trading at $4,182 and down 2.79%, underscoring interconnected volatility in the crypto space.
While Ethereum navigates these challenges, other assets like DAI provide stability in volatile markets, Worldcoin integrates AI-driven solutions, and OM connects traditional finance with DeFi protocols.
For additional context on market dips, see this related note: Bitcoin Dips Below $113,000 as Sell-Off Intensifies.
Disclaimer: This article is for informational purposes only and does not constitute advice of any kind. Readers should conduct their own research before making any decisions.
