Ethereum Falls Below $4K: Whales Stockpile as Liquidations Surge

Ethereum (ETH) has fallen below the critical $4,000 support level, triggering mixed reactions from market participants. While some analysts caution of a bearish trend, large investors—commonly referred to as "whales"—are accumulating the dip, injecting approximately $1.6 billion into Ethereum wallets over two days. This surge in buying activity, according to analytics firm Lookonchain, involved 15 wallets receiving 406,117 ETH from major platforms like Kraken and BitGo. These addresses, identified as "accumulator wallets," have added nearly 400,000 ETH in a single day, reflecting strategic long-term positioningtitle1^[1].

The price decline has led to significant liquidations in the cryptocurrency market. Data from Coinglass shows $1.13 billion in total liquidations over the past 24 hours, with Ethereum accounting for $409.6 million, predominantly from long positions. A single $29.12 million ETH-USD order on Hyperliquid was among the largest liquidations. Darkfost, an on-chain analyst, noted that Ethereum’s open interest has seen one of its steepest declines since early 2024, with Binance alone losing over $3 billion in positions on September 23title1^[1].

Despite the short-term volatility, whale activity suggests confidence in Ethereum’s long-term trajectory. Accumulator wallets have historically shown resilience during dips, with a record 1.2 million ETH absorbed on September 18. Analyst Altcoin Gordon has highlighted that Ethereum is nearing a "long-term buying zone," predicting appreciation by December. Market strategist Shay Boloor argues that the dip does not signal a bear market, citing support from high-profile investors like Tom Lee and Stanley Druckenmillertitle1^[1].

Institutional flows and ETF dynamics further underscore the market’s duality. While Ethereum ETFs recorded $290 million in outflows over three days—the largest since late August—whale accumulation continues unabated. On-chain data from Glassnode reveals $300 million in realized losses on September 22, indicating short-term holders are exiting. However, historical patterns show such setups often precede ETH bottoms as weak hands exit and larger holders consolidate supplytitle2^[2].

Technical indicators also hint at potential upward momentum. Ethereum’s price has entered a symmetrical triangle pattern on the four-hour chart, with a $4,440 breakout target. If achieved, the price could test the $4,800–$4,950 resistance range, potentially reaching $5,249. Analysts like CryptoGoos emphasize Ethereum’s strong macro structure, with a falling wedge pattern on the weekly chart suggesting a $6,100 target.

Market observers remain divided on Ethereum’s near-term direction. While leveraged traders face heightened risks, whale accumulation and institutional confidence suggest a potential rebound. Key factors to monitor include upcoming economic data, ETF inflows, and whether Ethereum sustains above $4,500. For now, the cryptocurrency trades at $3,943, down from its all-time high but showing signs of strategic buying from large holderstitle1^[1].