- Ethereum’s price falls below $4,000, causing market reactions.
- $409.6M in ETH liquidations observed following price drop.
- Institutional derisking evident from ETF fund outflows.
Ethereum’s drop below $4,000 on September 2025 led to $409.6M liquidations, affecting major whale investors and sparking market volatility.
Analysts believe this shift could signal an extended bearish trend, influencing future market dynamics and investor sentiment, despite current institutional interest.
Ethereum’s fall below $4,000 in late September initiated significant liquidation and market volatility. Market participants responded swiftly to this shift.
Whale investors and institutional entities played significant roles during the decline, moving 406,117 ETH, equivalent to approximately $1.6 billion USD, into 15 accumulator wallets, primarily via Kraken and BitGo exchanges.
The immediate impact on the Ethereum market included heavy liquidations, amounting to $409.6 million, with broader market liquidations totaling $1.13 billion. This created forced selling pressure around critical levels.
Institutional activity reflected in Ethereum ETF outflows of $140.8 million on September 24, 2025. This suggests derisking despite robust aggregate ETF holdings at 6.3 million ETH.
Prominent figures like Trader Mags emphasized the routine nature of pullbacks, noting only weekly closes below support could shift perspectives.
“Routine pullbacks are normal and only weekly closes below key support should shift the bearish narrative.” – Trader Mags, source
Analysts highlight similar trends observed during past rate hikes when leverage and ETF flow reversals led to market corrections. Long-term whale accumulation suggests confidence in Ethereum’s enduring value.
