Ethereum Battles to Hold $4K as Billions in Staked ETH Prepare to Flood Market Ethereum (ETH) is grappling with a significant downturn, struggling to hold above the $4,200 mark following a sharp sell-off that triggered widespread liquidations across the crypto market. The digital asset has shed nearly 9% over the past week, leaving traders on edge as a potential retest of the $4,100 support looms.
Market Turmoil and Liquidation Waves
The recent market turbulence has exacted a heavy toll, with CoinGlass data revealing over $178 million in liquidated positions within the last 24 hours. Ethereum long traders bore the brunt of this capitulation, with more than $127 million wiped out. A notable instance saw one aggressive Hyperliquid trader incur nearly $6.2 million in losses after re-entering ETH longs, erasing months of gains in just two days. This volatility is compounded by a surge in Ethereum's staking withdrawal queue, now exceeding 910,461 ETH (approximately $3.91 billion), signaling a substantial upcoming supply release that could further depress prices.
Institutional Resilience Amid Retail Retreat
Despite the palpable pain among retail investors, major institutional players appear to be leveraging the dip. Bitmine Immersion, the largest publicly traded ETH holder, recently augmented its holdings by 52,475 ETH, pushing its total stake to nearly $6.6 billion. Similarly, SharpLink acquired 143,593 ETH, although its position is currently underwater. Blockchain trackers have also noted significant inflows, over $38 million, from FalconX-linked wallets. This contrasting behavior suggests that while short-term sentiment remains volatile, large-scale investors are accumulating ETH, banking on its long-term potential. Meanwhile, on-chain activity shows a weakening trend, with active Ethereum addresses dropping by almost 28% in August, indicating a decline in retail participation and slowing network growth.
Outlook: Short-Term Pressure, Long-Term Optimism
Market experts caution that macroeconomic uncertainties, particularly ahead of the U.S. Federal Reserve’s Jackson Hole meeting, could maintain downward pressure on Ethereum. A hawkish stance from Fed Chair Jerome Powell might trigger further risk-off sentiment across the broader crypto and equity markets. However, analysts remain optimistic about Ethereum's long-term prospects once the market absorbs the considerable staking unlock. Some forecasts project ETH to rebound, potentially reaching between $6,000 to $8,000 by year-end, provided institutional inflows remain consistent. The critical question now revolves around whether ETH can defend the crucial $4,000 level or if the impending supply pressure will force a deeper price correction.
