After breaking through its all-time high (ATH) without much conviction last month, Ethereum’s ETH has since lost 19%, falling below $4,000 overnight. Let’s take a look back at this difficult period.
Ethereum (ETH) continues to fall, breaking below $4,000
Since the beginning of the week, we have seen a decline in the crypto market, with more or less pronounced drops depending on the asset. For its part, the price of Ethereum’s ETH continues to see red, falling below the symbolic $4,000 level for the first time overnight.
While ETH had tentatively broken its all-time high (ATH) on August 24 to reach $4,965, the asset is now down 19% to $4,013 at the time of writing, after briefly touching $3,970:
Over the past 24 hours, perpetual trading platforms have recorded $160 million in liquidations on long positions on Ether. Across the entire crypto market, this represents 48% of long position liquidations.
Although the decline is fairly widespread across most cryptocurrencies, in the case of ETH, it seems to confirm some of the concerns we have raised recently, starting with the significant outflows from staking.
Where the queue was 43 days long last week, it is now nearly 39 days, with more than 2.23 million ETH waiting to be withdrawn. While withdrawal requests began to surge over the summer, we can therefore estimate that more and more Ethers could be dumped on the market in the coming weeks, although the practice itself is not necessarily synonymous with a desire to sell:
On the US spot Ethereum ETF side, we saw a third consecutive day of declines yesterday, with outflows of $79.36 million. With $27.42 billion in assets under management, this represents a 10.32% decline from an all-time high of over $30.57 billion on August 22:
Over the next few days, we will now need to keep a close eye on the $4,000 threshold to see whether, despite a slight break, it will manage to act as a support level, or whether we are at the beginning of a more pronounced correction.
