Ethereum’s latest liquidation event may look similar on the surface to August’s flush-out, but the underlying market pattern tells a very different story.
Data suggest that the previous wipeout reset leverage in a buyer-controlled uptrend, while this week’s crash unfolded in a seller-dominated, bearish setup.
Ethereum Flashback? Not Quite
In the past two months, the network has witnessed only two major long liquidations above $400 million.
On August 14, Ethereum’s $444 million in long liquidations came amid a buyer-dominated environment. Open interest stood at $29 billion, and funding rates were positive at +0.013. This indicated aggressive long positioning and high leverage. The subsequent price drop triggered a cascading liquidation of overextended longs, but the broader uptrend remained intact.
During that period, the price closed above the EMA 20, SMA 50, and AVWAP levels, and confirmed that buyers still held structural control.
Fast forward to September 22, when long liquidations reached $467 million, and the setup was notably different. Open interest, for one, had eased to $27.3 billion, while funding slipped slightly negative to -0.0020. This depicted more pressure to maintain or add short positions.
ETHUSD. Source: TradingViewAlthough funding had been positive in the days leading up to the sell-off, the sudden flip meant that bears were starting to dictate direction. Technically, Ethereum failed to defend key support around the area marked as 5°, as the price closed below the EMA 20, SMA 50, and critical AVWAPs that once acted as a safety net for buyers.
CryptoQuant said that this breakdown indicated that sellers had seized control of the trend and turned what might have been a routine shakeout into a deeper structural shift.
A $400 million liquidation in a bull-leaning market merely resets leverage, while the same magnitude in a seller-driven context can accelerate downside momentum.
Bearish Forecasts
Ethereum remains in a fragile zone. The asset briefly slipped below $4,000 on Thursday before recovering slightly above the level. Experts, including analyst ‘Sykodelic,’ are now anticipating a correction that could push prices toward $3,500, and intermediate supports lie at $3,800-$3,900, as oversold signals and historical drawdowns align.
On-chain figures, however, also reveal significant whale accumulation and shrinking exchange holdings, which show that larger investors are capitalizing on weakness. This points to a shaky near-term outlook.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
ETH 15-minute Rally 0.91%: On-chain Liquidity Enhancement and Short Covering Drive Market
Between 2026-03-23 02:15 and 02:30 (UTC), ETH price rallied rapidly within the 2047.53 to 2070.28 USDT range, with 15-minute returns reaching +0.91% and volatility of 1.11%. Market fluctuations intensified during this time window, with increased attention, synchronized expansion in spot and derivatives trading volumes, and evident short-term long/short positioning battles.
The primary driver of this price movement was recent on-chain large-scale stablecoin (USDC/USDT) minting events boosting liquidity, particularly approximately $1.6 billion in capital inflows on-chain around March 16, supporting mainstream
GateNews29m ago
Mystery Whale Withdraws 4.35 Million from Aave to Purchase ETH, Holdings Reach 1.2 Million
A mysterious whale recently withdrew 4.35 million USDT from Aave, converting the entire amount to purchase 21,030 ETH, bringing its holdings to 122,392 ETH, with a market value of approximately $251.3 million. The whale continues to increase its ETH holdings through DeFi leverage strategies, demonstrating optimism toward the market and signaling a long-term bullish stance.
MarketWhisper39m ago
A whale transferred 11,950 ETH withdrawn at a high price 7 months ago to a new wallet, with an unrealized loss of $26.77 million
On March 23rd, Lookonchain monitoring showed that a whale at address 0x2607 withdrew 11,950 ETH seven months ago at an average price of $4,295, valued at approximately $51.32 million at that time. Currently, this batch of ETH is worth about $24.55 million, with an unrealized loss of approximately $26.77 million, representing a decline of about 52%. The whale has transferred this portion of ETH to a new wallet and has not yet sold it.
GateNews45m ago
Pundi X CEO: USR Attacked for $25 Million ETH Loss, Some Funds May Have Been Withdrawn Early
Pundi X CEO Zac Cheah revealed that Resolv's stablecoin USR suffered a security incident in which hackers exploited a vulnerability to mint 80 million tokens and siphon off 25 million dollars in Ethereum. This incident exposed deficiencies in collateralization and risk controls of algorithmic stablecoins, resulting in reduced market confidence in the project, reminding investors to pay attention to fund flows and audit status.
GateNews47m ago
Machi Big Brother suffered a week-long loss of $1.42 million, cumulative losses of $29 million, and added 25x leveraged ETH long position without closing
Taiwan entertainer Huang Li-cheng (Big Brother Machi) conducted ETH operations on the Hyperliquid platform, with weekly losses exceeding $1.42 million. His historical cumulative losses reached $28.66 million with a 0% win rate. Despite experiencing multiple liquidations, he continues to add to his positions, demonstrating an operation pattern of not easily giving up.
動區BlockTempo56m ago
NYSE Lifts Crypto Options Cap Across 11 BTC and ETH ETFs
Two NYSE-affiliated venues have scrapped the 25,000-contract cap on options tied to 11 crypto ETF options, a move the exchanges filed with the Federal Register on March 10. The Securities and Exchange Commission acknowledged the rule alterations on Sunday by waiving the standard 30-day waiting
CryptoBreaking1h ago
