Ethereum

when

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.
<h2 id="ethereum-flashback-not-quite">Ethereum Flashback? Not Quite</h2>
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.
<figure style="width: 100%" class="wp-caption aligncenter"><a rel="noopener noreferrer nofollow"><img alt="ETHUSD. Source: TradingView" width="1763" height="647"></a>
 <figcaption>
 ETHUSD. Source: TradingView
 </figcaption>
</figure>
Although 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 <a href="https://cryptoquant.com/insights/quicktake/68d480643cad2721bc5e3f08-Ethereum-Same-liquidation-different-context" target="_blank" rel="noopener noreferrer nofollow">said</a> 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.
<h2 id="bearish-forecasts">Bearish Forecasts</h2>
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 <a href="https://cryptopotato.com/ethereum-sees-red-crashes-to-4k-in-a-7-week-low-where-to-next/" rel="noopener noreferrer nofollow">anticipating</a> 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.
The post <a href="https://cryptopotato.com/ethereums-470m-liquidation-isnt-august-all-over-again-heres-why-this-drop-feels-different/" rel="noopener noreferrer nofollow">Ethereum’s $470M Liquidation Isn’t August All Over Again: Here’s Why This Drop Feels Different</a> appeared first on <a href="https://cryptopotato.com/" rel="noopener noreferrer nofollow">CryptoPotato</a>.

Ethereum’s $470M Liquidation Isn’t August All Over Again: Here’s Why This Drop Feels Different

Table of Contents

CryptoPotato_News

Other articles published on Sep 25, 2025

Bitget Launches Industry-First Unified Account Covering Four Major Blockchains

Forknet Mainnet is LIVE: Revolutionizing DeFi with L2 Power and Unmatched Liquidity (25 Sep)

Shiba Inu Shows Resilience Amid Market Decline

Cloudflare Announces Launch of NET Dollar Stablecoin

India Blockchain Month 2025: Regulatory Clarity Tops Agenda in Delhi

Crypto Worth $1.12B Liquidated as Market Goes Red

Join our free newsletter for daily crypto updates!