- Ethereum dropped 4.6% to $4,380, pressured by technical breakdowns, profit-taking, and macroeconomic uncertainty.
- Investors are closely watching key support near $4,180 and upcoming Fed announcements for market direction.
Ethereum (ETH) experienced a sharp decline of 4.59% over the past 24 hours, falling to $4,380 and underperforming the broader crypto market, which saw a 2.92% drop. The downturn comes amid a mix of macroeconomic concerns, technical sell-offs, and profit-taking by traders.
Ethereum Macroeconomic Pressures Weigh on Crypto
Stronger-than-expected U.S. inflation data dampened expectations for aggressive Federal Reserve easing, with markets now pricing in only a 25-basis-point rate cut in September. Geopolitical tensions further amplified uncertainty after U.S.-Russia talks over Ukraine stalled, and former President Trump’s meeting with Volodymyr Zelensky drew market attention.
These macro headwinds have hurt risk appetite, pushing investors toward traditional safe-haven assets. Gold rose 1.2% as Ethereum and other risk assets fell. The close correlation between ETH and Bitcoin, which dropped 2.5%, intensified Ethereum’s sell-off. Traders are now closely monitoring Fed Chair Jerome Powell’s upcoming speech at Jackson Hole for hints on future monetary policy.
Technical Breakdown Spurs Liquidations
Ethereum’s chart also painted a bearish picture. ETH fell below its 23.6% Fibonacci retracement level at $4,450 and its pivot point at $4,483, breaking the recent bullish structure. Momentum indicators cooled, with the Relative Strength Index (RSI) dropping to 66.7 from prolonged overbought conditions.
This technical weakness triggered cascading liquidations, putting $1.19 billion in long positions at risk if ETH dips below $4,400. Analysts are eyeing the $4,180 level, near the 76.4% Fibonacci retracement, as a critical support where bulls may attempt to defend against further losses.
Profit-Taking and ETF Outflows Increase Selling Pressure
Institutional sentiment added to the downward pressure. Ethereum spot ETFs recorded $152 million in withdrawals on August 18, signaling cooling appetite from funds after weeks of strong inflows. Whale activity also raised concerns, with Ethereum co-founder Jeffrey Wilcke moving 5,200 ETH (approximately $9.57 million) to exchanges.
Overall, Ethereum’s recent slide reflects a convergence of macroeconomic uncertainty, technical breakdowns, and strategic profit-taking. Investors are now watching key support levels and upcoming Fed announcements to gauge whether ETH can stabilize or face deeper losses in the near term.
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