Ethereum News Today: Whales Stake Big Bets as Ethereum Tests $4,500 Crossroads

Generated by AI AgentCoin World
Monday, Aug 25, 2025 9:54 am ET1min read
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Aime RobotAime Summary

- Ethereum (ETH) dropped to $4,550 after a $4,950 liquidity grab triggered $720M in crypto liquidations, with Bitcoin and ETH longs accounting for nearly $500M.

- Analysts warn $4,500 is critical support; failure could push ETH toward $4,300, while whale activity added $1.6B in ETH this week amid volatility.

- Binance whale accumulation and Fibonacci levels ($4,590–$4,760) suggest potential demand, but a $4,950 break is needed for a $5,500 rebound.

- Bitcoin's flash crash shifted institutional focus to ETH, with speculation that Ethereum could outperform BTC amid Fed rate cut expectations.

Ethereum (ETH) faced a sharp correction following a liquidity grab near $4,950, triggering over $720 million in liquidations across the crypto market, with nearly $500 million attributed to

Bitcoin
and
Ethereum
long positions. The token has since declined to around $4,550, down 4.5% in the last 24 hours, though it remains up 8% for the week and over 220% from its yearly low. Analysts have highlighted the significance of the $4,500 support level, with failure to hold this could see ETH retest the $4,300 level, historically a key starting point for upward momentum [1].

The $4,880 level now acts as immediate resistance, and bulls must reclaim $4,693 quickly to stabilize the price and open the door for a potential recovery toward $4,880. If Ethereum fails to regain strength above $4,500, the path to $4,300 becomes more likely. Analyst Lennaert Snyder noted that Ethereum "took liquidity above $4,880 and flushed leveraged longs," suggesting that the current test of $4,500 support appears weak [1].

On the flip side, whale activity has shown some optimism. Wise Crypto reported that whales added over $1.6 billion worth of ETH this week, even amid heightened volatility. The $4,590–$4,760 range has been identified as a potential demand zone, aligning with key Fibonacci retracement levels. A break above $4,950 could pave the way for a move toward $5,500, according to the firm [1].

Meanwhile, whale accumulation on Binance has also increased, with CryptoQuant analyst Darkfost noting a growing demand from large holders on the exchange. This activity reflects a preference for building positions after clear trend confirmation, potentially offering additional support should Ethereum attempt a rebound toward $5,000 [1].

Historically, Ethereum has experienced pullbacks in September following strong August gains. Data from CoinGlass suggests that a similar correction could occur this year if the current momentum fails to hold. At present, ETH remains caught between critical levels—$4,690 on the upside and $4,500–$4,300 on the downside. A successful reclaim of $4,693 could reignite upward momentum toward $5,000, whereas a breakdown may reinforce seasonal weakness [1].

In parallel, Bitcoin’s recent flash crash and subsequent liquidations have redirected institutional attention toward Ethereum, with some analysts suggesting a rotation of exposure from BTC to ETH. This shift, combined with Ethereum’s growing role in stablecoins, smart contracts, and tokenization, has led some to speculate that the altcoin could outperform Bitcoin in the context of a potential Federal Reserve rate cut [2].

Source:

[1] Ethereum Plummets After $4,950 Liquidity Grab: Is a Bigger ... (https://cryptopotato.com/ethereum-plummets-after-4950-liquidity-grab-is-a-bigger-dump-coming/)

[2] Bitcoin Flash Crash Triggers $550M in Sunday ... (https://www.coindesk.com/markets/2025/08/25/bitcoin-flash-crash-triggers-usd550m-in-sunday-liquidations-as-ether-rotation-builds)