Ethereum posted its largest daily decline of 4.7%, hitting a seven-week low as the broader cryptocurrency market shed over $140 billion in value, with 24-hour liquidations exceeding $400 million.
Ethereum broke below the $4,000 threshold on Thursday, marking a seven-week low and extending the sharp cryptocurrency correction that has dominated this week's trading. The broader digital asset market has now evaporated more than $140 billion in market capitalization.
On Thursday (September 25), the world's second-largest cryptocurrency Ethereum declined as much as 4.7%, touching a low of $3,969, while Bitcoin also dropped 1.7%.
Coinglass data shows that nearly 130,000 traders globally were liquidated in the past 24 hours, with total liquidation amounts exceeding $400 million.
Cooling institutional inflows have intensified selling pressure. Since Monday this week, investors have withdrawn nearly $300 million from U.S.-listed Ethereum ETFs. On Monday alone, markets experienced a sudden decline that resulted in $1.7 billion worth of long positions being forcibly liquidated, impacting virtually all major cryptocurrencies.
According to BTC Markets cryptocurrency analyst Rachael Lucas, Ethereum's correction stems from "cooling institutional inflows" and "technical indicators showing short-term pressure." Lucas warns that if Ethereum falls below $3,800, it is expected to trigger additional liquidations.
Despite Ethereum supply on exchanges dropping to nine-year lows, suggesting long-term holders are accumulating, selling behavior from long-term holders has offset the positive impact of new capital inflows, placing Ethereum in a tug-of-war between bullish and bearish forces.
**Long-term Holder Selling Offsets Positive Signals**
While Ethereum exchange supply continues declining to nine-year lows, indicating investors are withdrawing tokens from centralized platforms for long-term holding, the market still faces selling pressure from long-term holders.
Over the past month, investors have cumulatively purchased more than 2.7 million Ethereum tokens worth over $11.3 billion, demonstrating strong confidence in Ethereum's long-term potential.
However, Ethereum's activity metrics have maintained an upward trend. This indicator measures long-term holder behavior, with increases typically signaling that these investors are selling rather than accumulating.
Analysis indicates that long-term holder selling behavior has neutralized bullish pressure from new capital inflows, placing Ethereum in a standoff between two opposing market forces.
If long-term holders continue substantial selling, Ethereum prices could decline further, potentially facing downside risks toward $3,910, which would completely break current bullish expectations.
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