Ethereum News Today: Ethereum Slumps 0.37% Below $4,200 Amid Volatile Liquidations and Whale Sales

Ethereum fell below the $4,200 level on August 10, with data from OKX showing the price at $4,193.49, a 0.37% drop over the previous 24 hours [1]. This marked a pullback after a brief but notable surge earlier in the week, when the asset climbed above $4,200 on Binance—the highest level since December 2021 [2]. The rise had been driven by a wave of short liquidations and increased spot trading volume, with over $207 million in short positions being liquidated during the breakout [3].

The recent decline, however, signals a slowdown in momentum and a potential period of consolidation. Over the same 24-hour period, the total value of liquidated positions across the market reached $383 million, with long positions being the most affected [1]. This reflects the growing volatility and the tug-of-war between bullish and bearish forces.

Adding to the mixed sentiment, a long-term whale recently offloaded 4,723 ETH at an average price of $7.7 [1], raising speculation about the intentions of major holders. At the same time, activity among first-time buyers and momentum traders has surged, according to Glassnode [1], suggesting Ethereum is maintaining broad appeal across different investor segments.

From a technical perspective, Ethereum remains within a bullish structure. The Relative Strength Index (RSI) sits at 68.84, just below the overbought threshold of 70, indicating potential for further gains in the near term [1]. Open interest has also increased by 13.88% in the past 24 hours, with the long/short ratio at 1.53, showing a preference for long positions [1]. Brave New Coin analysts have noted the possibility of a short squeeze, with price potentially moving toward the $4,500–$5,000 range [4].

Market participants are now closely watching whether Ethereum can retest and reclaim the $4,200 level. Historically, a strong Ethereum rally has often been followed by a shift in capital toward smaller altcoins, especially those on the ERC-20 network [1]. Some analysts are already positioning potential altcoins as the next beneficiaries of a broader market rotation.

Source:

[1] https://www.panewslab.com/en/articles/zuab3xyc

[2] https://www.coindesk.com/markets/2025/08/09/eth-jumps-7-to-usd4-200-highest-since-december-2021-as-analysts-forecast-what-s-next

[3] https://www.binance.com/en/square/post/08-09-2025-ethereum-news-ethereum-smashes-through-4k-and-4-200-in-two-day-surge-analysts-eye-altcoin-rotation-and-btc-next-28080820027785

[4] https://bravenewcoin.com/insights/ethereum-eth-price-prediction-ethereum-breaks-4200-resistance-with-short-squeeze-potential-toward-4500-5000-zone