Ethereum News Today: Ethereum Dips Below $4,400 Amid Inflation Concerns and $169M Liquidations

Ethereum briefly dipped below $4,400 on August 17, 2025, amid heightened market volatility triggered by unexpected U.S. inflation data and profit-taking activity among traders. The decline was exacerbated by liquidations in the derivatives market, with over $169 million in ETH futures positions affected during the move [1]. This price action coincided with SharpLink Gaming’s second-quarter financial report, which revealed a net loss of $103 million, further contributing to bearish sentiment [5]. Despite the pullback, Ethereum stabilized above $4,430 by the following session, with analysts noting cautious optimism as the $5,000 level is viewed as a potential near-term target [2].

The broader crypto market mirrored Ethereum’s downward trend, with correlated assets such as ERC-20 tokens and major DeFi altcoins experiencing synchronized declines. Institutional activity, however, has continued to show resilience, with Ethereum ETF inflows remaining strong despite the recent outflow of $59.3 million on August 16, which ended a $3.7 billion buying streak [8]. Major institutional players, including BlackRock, have maintained aggressive buying behavior, signaling a divergence between retail and institutional sentiment [8]. Over $169 million in ETH futures liquidated during the drop, highlighting the intense activity in the derivatives market [1].

On-chain data indicated increased whale activity, with a single wallet purchasing $280 million worth of ETH within 24 hours, potentially signaling accumulation amid volatility [4]. Meanwhile, an Ethereum Foundation-linked wallet sold 7,294 ETH at an average price of $4,558 over three days, reinforcing the narrative of institutional maneuvering amid price instability [7]. The validator exit queue—representing unstaked ETH—reached 855,158 ETH, valued at $3.7 billion, raising concerns about potential downward pressure on the price. Bitwise analyst Juan Leon noted that unstaked ETH may trade at a discount in derivative markets, reducing collateral value and potentially triggering forced selling [6].

Ethereum’s fundamentals remain intact, with institutional sentiment holding firm. Despite the recent correction, Ethereum’s on-chain volume surged to $13 billion during the period, reflecting continued activity on the network [3]. Historical trends suggest that similar market reactions have often led to subsequent price recoveries, and many analysts believe Ethereum could rebound if macroeconomic conditions stabilize and key technical levels hold [5].

The broader market remains closely watching external economic indicators and on-chain developments, with the $4,200 and $4,800 levels identified as significant support and resistance zones [7]. As Ethereum consolidates around $4,400, the coming sessions will be critical in determining whether the level holds or if a deeper correction is on the horizon [1].

Source:

[1] Ethereum News Today (https://www.ainvest.com/news/ethereum-news-today-ethereum-holds-4-400-support-4-83-daily-drop-volatility-surge-2508/)

[2] Ethereum Stabilizes Above $4430, Eyes $5000 Threshold (https://www.ainvest.com/news/ethereum-news-today-ethereum-stabilizes-4-430-eyes-5-000-threshold-2508/)

[3] Ethereum On-Chain Volume Soars To $13 Billion ... (https://www.mitrade.com/insights/news/live-news/article-3-1045304-20250816)

[4] Ethereum Whale Activity Surges: $280M Purchased In 24 ... (https://www.mitrade.com/au/insights/news/live-news/article-3-1046196-20250818)

[5] Ethereum Dips Below $4.5K as SharpLink Reports $103M ... (https://bravenewcoin.com/insights/ethereum-eth-price-today-ethereum-dips-below-4-5k-as-sharplink-reports-103m-quarterly-loss)

[6] Billions in Ethereum Waiting to Be Unstaked Could Add ... (https://decrypt.co/335549/billions-in-ethereum-waiting-to-be-unstaked-could-add-sell-pressure-to-eth-analyst/)

[7] Ethereum Foundation-Linked Wallet 0xF39d Sells ... (https://blockchain.news/flashnews/ethereum-foundation-linked-wallet-0xf39d-sells-7-294-eth-at-4-558-average-in-3-days-on-chain-data-highlights-key-level)

[8] Ethereum spot ETFs saw a $59.3M outflow, ending ... (https://www.instagram.com/p/DNbXmDCoKG_/)