Ethereum $570M Sell-Off May Push Price Below $4,000
Ethereum price faces significant selling pressure as futures data shows sellers outpaced buyers by $570 million. This level of net taker volume often signals a local top. Analysts identify key support zones at $3,960 and $3,360, which must hold to maintain market structure. The ETH/BTC ratio has weakened amid capital rotation, with large BTC-to-ETH swaps temporarily boosting price. Traders Daan Crypto Trades and Benjamin Cowen anticipate Bitcoin outperforming Ethereum in the near term, expecting BTC dominance to climb above 60% through September and October. The prevailing sell-off increases the risk of Ethereum slipping below $4,000. Short-term bearish sentiment around Ethereum price may persist, though a healthy rotation could set the stage for a stronger rebound later.
Bearish
The substantial $570M net sell-off in Ethereum futures signals mounting bearish momentum. Historically, similar concentrated selling spikes have coincided with local tops and price corrections. The breach of $3,960 and $3,360 support levels would likely trigger further declines, reinforcing short-term pessimism. Additionally, capital rotation toward Bitcoin, as reflected in the weakening ETH/BTC ratio and rising BTC dominance, tends to intensify selling pressure on Ethereum. While this dynamic may set the stage for a later rebound, traders should brace for potential volatility and downward movement in the near term.