Ethereum News Today: Ethereum Whales Split: Short-Term Selloff vs. Long-Term Accumulation Drive Market Volatility

Ethereum (ETH) experienced a significant price correction in late September 2025, dropping below the $4,000 psychological threshold amid heightened volatility and strategic whale activity. A prominent whale position, identified as 0xa523, faced a liquidation of 9,152 ETH (worth $36.4 million at the time), resulting in an unrealized loss exceeding $45 millionEther Whale Books $45M Loss as ETH Falls Below $4K^[5]. This marked the largest single liquidation during the selloff, which saw total long-position liquidations exceed $134 million over four hoursEthereum Price Dips to 7-Week Low as Whales Balance Buying and Selling^[1]. The price decline, reaching a seven-week low of $3,965, triggered broader market stress, with altcoin liquidations surpassing $1.7 billionEthereum Plunges Below $4,000 Amidst Whale Volatility and Massive Liquidations^[2].

The whale in question, which had accumulated a 25x short position of 13,808 ETH, faced a liquidation event at $4,384.85, leaving its balance below $500,000Ethereum Price Dips to 7-Week Low as Whales Balance Buying and Selling^[1]. This position, valued at $57.36 million, reflected aggressive bearish bets that were invalidated by the sharp price drop. Analysts noted that the whale’s strategy mirrored broader market trends, where institutional players and long-term holders simultaneously engaged in both accumulation and offloading of ETHWhat Are Whales Doing as Ethereum Price Falls^[3]. For example, Grayscale transferred $53.8 million in ETH to Coinbase, while 10 wallets withdrew 210,452 ETH (worth $862.85 million) from exchanges like Kraken and BitGoEthereum Price Dips to 7-Week Low as Whales Balance Buying and Selling^[1].

Market analysts highlighted divergent whale strategies as a key factor in the price dynamics. While some whales offloaded large positions—such as a $12.53 million ETH transaction—others accumulated during the dip. Lookonchain reported that over 406,000 ETH (valued at $1.6 billion) was acquired by long-term holders within a weekEthereum Price Dips to 7-Week Low as Whales Balance Buying and Selling^[1]. This duality underscored a maturing market, where sophisticated players balanced speculative short-term bets with strategic long-term positioning. Binance, the largest ETH exchange, saw mixed flows: withdrawals of 8 million ETH on some days and deposits of 4 million ETH on othersEthereum Price Dips to 7-Week Low as Whales Balance Buying and Selling^[1].

Technical and macroeconomic factors further complicated the outlook. Ethereum’s price fell to $3,965 on September 25, with analysts warning that a breakdown below $4,000 could push the asset toward $3,800–$3,750 before potential reboundsWhat Are Whales Doing as Ethereum Price Falls^[3]. Benjamin Cowen, CEO of Into The Cryptoverse, noted that Bitcoin’s growing dominance (forecasted to exceed 60%) could redirect capital away from altcoins like ETHWhat Are Whales Doing as Ethereum Price Falls^[3]. Shawn Young of MEXC Research emphasized that while $4,000 remained a critical support level, medium-term fundamentals—such as DeFi adoption and staking activity—suggested a constructive trajectory if buying pressure resumedWhat Are Whales Doing as Ethereum Price Falls^[3].

Strategic implications for traders and investors centered on risk management and liquidity monitoring. Short-term traders were advised to focus on key support/resistance levels and tighten stop-loss orders to mitigate losses during volatile periods. Long-term investors, however, viewed the dip as an opportunity to accumulate ETH at discounted prices, given its foundational role in decentralized finance and smart contract ecosystemsEthereum Price Dips to 7-Week Low as Whales Balance Buying and Selling^[1]. Institutional outflows from Ethereum ETFs—totaling $795.56 million over five days—highlighted sensitivity to price stabilityEthereum Plunges Below $4,000 Amidst Whale Volatility and Massive Liquidations^[2]. Meanwhile, the clearing of excessive leverage across derivatives markets signaled a potential reset, with some analysts drawing parallels to Ethereum’s June 2025 rally from $2,000 to $4,000Ethereum Plunges Below $4,000 Amidst Whale Volatility and Massive Liquidations^[2].

The broader market context included macroeconomic headwinds, such as the U.S. government shutdown risk, which added to uncertainty. While the immediate impact on crypto was indirect, delayed economic data and regulatory pauses could slow institutional adoption. Despite these challenges, Ethereum’s price trajectory remained contingent on whale accumulation, institutional inflows, and macroeconomic clarity. Analysts projected a range of outcomes, from a swift rebound to a prolonged bear market, with key price targets hinging on whether buyers defended $4,000 or bears extended the decline furtherEthereum Plunges Below $4,000 as $36M Liquidation Shakes Market Confidence^[4].