Ethereum Falls 7.3%, $196M Liquidated, Institutions Buy
Ethereum faced a 7.3% weekly drop and an additional 1.5% fall in 24 hours, driving its price to around $4,166. Margin traders saw $196.8 million in Ethereum liquidations, mainly from long positions, and over 136,000 accounts were wiped out. High-leverage traders, including one who lost $6.2 million after re-entering the market and James Wynn, saw partial or full liquidations. In contrast, institutions like Bitmine Immersion and SharpLink added over 516,000 ETH to their reserves, buying during the price dip. Large transfers to exchanges by some whales fueled panic selling, increasing volatility. Traders should note the heightened short-term bearish pressure and possible rebound from strong institutional demand.
Bearish
The sharp 7.3% drop in Ethereum’s price and nearly $200 million liquidated in a single day reflect substantial short-term bearish pressure. High-leverage positions triggered forced selling, echoing previous downturns like the May 2021 crash when margin calls accelerated losses. Although institutional buying signals confidence, the immediate impact is heightened volatility and downside risk for retail traders facing potential liquidations. In the short term, we can expect further corrective movements as market sentiment remains fragile. Over the long term, sustained demand from major holders may provide support, but near-term trading will likely stay bearish until volatility subsides.