Ethereum has fallen below the $4000 mark, reaching its lowest level in nearly seven weeks. This decline is part of a broader cryptocurrency market plunge that has wiped out over $140 billion in total market capitalization since the beginning of this week.

Data shows that on Thursday, Ethereum, the second-largest cryptocurrency, dropped 4.7% to $3969, while Bitcoin declined 1.7%. Ethereum has fallen to its lowest point in nearly seven weeks.

BTC Markets cryptocurrency analyst Rachael Lucas indicated that Ethereum's decline stems from "slowing institutional capital inflows" and "technical signals showing short-term pressure." Since Monday, investors have withdrawn nearly $300 million from US-listed Ethereum exchange-traded funds (ETFs).

During this period, $1.7 billion worth of bullish positions were wiped out in a sudden downturn, affecting most major tokens as well. Lucas stated that if Ethereum falls below $3800, more liquidation activities are expected to occur.