- One ETH trader lost $36.4M in a liquidation, pushing wallet losses above $45M.
- Liquidation clusters between $2,370–$2,500 could trigger further forced selling.
- ETH may drop to $3,400, but holding $3,800–$4,000 could spark a rebound toward $5K.
Ethereum’s price has slipped below $4,000, triggering one of the largest single-trader losses in recent memory. A whale wallet known as “0xa523” saw 9,152 ETH liquidated—worth $36.4 million—leaving the trader with just half a million dollars. The total realized losses for this wallet now top $45 million, earning it the unwanted title of Ethereum’s “biggest loser.” The event fueled broader selling pressure, with ETH shedding over 10% in a week and piling more pain onto bullish traders.
Long Traders Wiped Out
CoinGlass data shows Ethereum traders lost over $718 million in long liquidations this week, compared to just $79 million in short positions. The $331 million long squeeze on Thursday alone sent shockwaves through the market, pushing Ether down to $4,001. With liquidation clusters building between $2,370 and $2,500, analysts warn that if ETH continues sliding, this range could see an avalanche of forced selling before stabilization kicks in.
Technical Breakdown Points Lower
Ethereum recently broke down from a symmetrical triangle on the daily chart, a classic bearish reversal setup. Technicals now point to short-term downside targets at $3,600–$3,400, overlapping with the 200-day EMA near $3,392. This suggests ETH could fall another 10–15% in the worst-case scenario. Analysts highlight $3,600 as a “key demand zone,” which could spark a rebound if defended successfully. Failure to hold this level, however, opens the door to deeper declines heading into October.
Can Ethereum Bounce Back?
Despite the bloodbath, some analysts remain cautiously optimistic. ETH’s weekly chart shows it retesting $3,800–$4,000—a zone that once acted as major resistance in the 2022–2023 cycle. If bulls can flip this into strong support, the path toward $4,760–$5,000 could reopen, where a large short cluster sits waiting. That move would force short sellers to buy back, fueling momentum higher. For now, though, Ethereum traders are stuck watching whether support levels hold—or if another round of liquidations sends ETH deeper into correction territory.
