- Ethereum dipped below $4,000, triggering over $71 million in long liquidations before bouncing back above support.
- Whales accumulated large ETH reserves, signaling confidence despite short-term volatility and predictions of a possible rebound.
Ethereum (ETH) extended its recent decline, slipping below the key $4,000 level and triggering a wave of liquidations. The move came during a broader market downturn that also saw bitcoin retreat, dragging altcoins lower.
Ethereum Faces Heavy Long Liquidations
The drop under $4,000 erased long positions worth more than $71 million in just 24 hours, with Bybit alone accounting for $36 million. This sell-off unfolded mainly during Asian trading hours, when ETH briefly tested the $3,900 support range before bouncing back above $4,000.
Analysts note that derivative markets remain a major driver of Ethereum’s short-term moves, often overwhelming spot demand. Despite signs of accumulation and growing staking activity, leveraged trading has repeatedly forced price corrections.
Whales Buy the Dip on Ethereum
While leveraged traders absorbed losses, Ethereum whales stepped in to take advantage of the decline. On-chain data revealed that 10 new whale wallets acquired a combined 201,000 ETH during the downturn. This activity reinforces the long-term bullish outlook for Ethereum, which continues to play a central role in decentralized finance and blockchain adoption.
Whales are aggressively buying $ETH now.
Today, 10 new wallets have bought 201K ETH worth $855 million from exchanges and OTC.
This often happens when ETH is getting closer to a bottom. pic.twitter.com/EUBMXE5cwZ
— ZYN (@Zynweb3) September 25, 2025
At the same time, the trading firm Wintermute nearly depleted its ETH reserves, retaining only 5,000 tokens after transferring most of its holdings to centralized and decentralized exchanges.
Is a Recovery on the Horizon?
Market sentiment remains divided. Some bearish predictions suggest Ethereum could still fall to $3,700 before stabilizing. Others see the $3,900 level as a potential bottom, especially since most long positions at that range have already been flushed out.
Interestingly, as ETH slipped under $4,000, traders began targeting short positions. Within an hour, $4.5 million worth of shorts were liquidated, signaling a possible shift in market dynamics.
For now, analysts expect Ethereum to spend weeks rebuilding liquidity before attempting a stronger recovery. Key resistance sits at $4,580, a level that must be cleared to confirm a return to bullish conditions.
Despite short-term turbulence and heavy liquidations, Ethereum’s fundamentals remain strong. Continued whale accumulation and increased stablecoin reserves on exchanges suggest that large players are preparing for the next leg up. If ETH can defend the $3,900 level and push past $4,580, a renewed rally could follow.
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