Ethereum News Today: Ethereum Slides Below $4,400 as Whale Outflows and Fed Concerns Drive Sell-Off

Ethereum's price continued to fall in late August 2025, trading below $4,400 amid a broader crypto market downturn. The decline was driven by a combination of factors, including large whale outflows, increased selling pressure from traders, and shifting macroeconomic expectations [1]. Over $888 million worth of Ethereum was withdrawn from major exchanges, indicating a surge in liquidation and risk-off behavior among market participants [1].

The selloff coincided with renewed concerns over Federal Reserve policy. The probability of a rate cut in the near term had fallen from 98% to 84%, largely due to stronger-than-expected inflation data, which triggered broader market jitters. As a result, Bitcoin dropped below $116,000, and Ethereum fell to as low as $3,200 in some reports [2]. Analysts attributed the move to a bearish shift in investor sentiment, with traders cutting positions ahead of a potential policy tightening cycle [2].

Technical indicators also suggested a continuation of the downward trend. Ethereum broke below the $4,650 resistance level, a key psychological threshold, and entered a correction phase toward the $4,180 support zone. Traders observed bearish signals, including declining volume and weakening momentum, reinforcing the possibility of further declines [4].

Adding to the pressure, Ethereum stakers began to unstake their holdings in record numbers, creating a potential flood of sell orders. The delayed withdrawal queue for unstaked ETH posed a risk to the coin’s price stability, as increased supply on the open market could exacerbate selling pressure [8].

Market analysts offered varying short-term outlooks. One prominent trader, @ThinkingUSD, predicted that Ethereum could fall back toward the $2,000 level, emphasizing that the psychological benchmark was becoming a critical support level in the near term [5]. However, some reports noted that despite the volatility, Ethereum’s technical foundation remained resilient. The price had consolidated after a 25% rally in August, suggesting that the bearish move might be a temporary correction rather than a long-term trend [7].

The broader crypto market mirrored Ethereum’s performance. The second-largest cryptocurrency by market cap, Ethereum, fell 3.11% in a 24-hour period, reaching $4,334.83. The market cap for Ethereum currently stands at approximately $523.94 billion, reflecting the magnitude of the ongoing correction [9].

Overall, the Ethereum price decline was influenced by a mix of macroeconomic uncertainty, technical breakdowns, and immediate market dynamics such as whale outflows and unstaking activity. While some traders anticipated a short-term rebound, the bearish sentiment continued to dominate in late August 2025 [1].

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Source:

[1] AInvest – [https://www.ainvest.com/news/ethereum-news-today-ethereum-falls-4-400-whale-outflows-liquidations-drive-volatility-2508/](https://www.ainvest.com/news/ethereum-news-today-ethereum-falls-4-400-whale-outflows-liquidations-drive-volatility-2508/)

[2] Coinpedia – [https://coinpedia.org/price-analysis/why-is-the-crypto-market-down-today-bitcoin-and-ethereum-struggle-as-fed-concerns-rise/](https://coinpedia.org/price-analysis/why-is-the-crypto-market-down-today-bitcoin-and-ethereum-struggle-as-fed-concerns-rise/)

[4] Mitrade – [https://www.mitrade.com/insights/news/live-news/article-3-1046799-20250818](https://www.mitrade.com/insights/news/live-news/article-3-1046799-20250818)

[5] Blockchain – [https://blockchain.news/flashnews/eth-price-outlook-trader-thinkingusd-calls-for-ethereum-return-to-2-000-highlighting-key-short-term-level](https://blockchain.news/flashnews/eth-price-outlook-trader-thinkingusd-calls-for-ethereum-return-to-2-000-highlighting-key-short-term-level)

[7] CoinCentral – [https://coincentral.com/ethereum-price-slides-from-4700-to-4400-are-bigger-losses-incoming-or-is-a-reversal-in-sight/](https://coincentral.com/ethereum-price-slides-from-4700-to-4400-are-bigger-losses-incoming-or-is-a-reversal-in-sight/)

[8] Yahoo – [https://finance.yahoo.com/news/billions-ethereum-waiting-unstaked-could-130003322.html](https://finance.yahoo.com/news/billions-ethereum-waiting-unstaked-could-130003322.html)

[9] Goodreturns – [https://www.goodreturns.in/news/crypto-crash-2025-bitcoin-tanks-below-116k-eth-xrp-sol-and-doge-fall-hard-is-this-a-buy-oppor-1450245.html](https://www.goodreturns.in/news/crypto-crash-2025-bitcoin-tanks-below-116k-eth-xrp-sol-and-doge-fall-hard-is-this-a-buy-oppor-1450245.html)