Ethereum Whales Accumulate $862M as $140M in Liquidations Trigger $4,000 Abyss

The Ethereum (ETH) market experienced a significant downturn on September 25, 2025, as the price dipped below $4,000 for the first time since August 8, triggering widespread liquidations and reshaping whale activity. According to blockchain analytics firm Lookonchain, a major whale address (0xa523) faced a $45.3 million loss after its leveraged bullish position of 9,152 ETH ($36.4 million) was forcibly liquidated on the decentralized exchange Hyperliquid. This event marked one of the largest single liquidations in a broader $140 million worth of ETH long positions wiped out during Asian trading hours, per Coinglass dataEther Whale Books $45M Loss as ETH Falls Below $4K^[1].

The price drop, which saw ETH hit a low of $3,983, was part of a broader cryptocurrency market decline driven by heightened concerns over a potential U.S. government shutdown. Over $100 million in leveraged bets were liquidated during the period, with 90% of these tied to bullish positions, underscoring the market’s overleveraged nature. The liquidation of the 0xa523 position exemplified the risks of aggressive leverage, as the whale’s balance plummeted to under $500,000Ether Whale Books $45M Loss as ETH Falls Below $4K^[1].

While retail traders bore the brunt of the selloff, whale activity revealed a more nuanced picture. Some large holders capitalized on the downturn, withdrawing millions in ETH from exchanges. Lookonchain reported that 10 wallets extracted 210,452 ETH ($862.85 million) from platforms like Kraken and Galaxy Digital OTC, signaling accumulation efforts. Conversely, others offloaded significant stakes, including a $12.53 million ETH sale, as institutional and long-term holders adjusted their positionsWhat Are Whales Doing as Ethereum Price Falls Below $4,000?^[2].

The liquidation risks extended beyond individual traders. Two Ethereum whales with combined holdings of 125,603 ETH ($238 million) faced potential forced liquidation on MakerDAO if the price continued to fall. The first whale, with 60,810 ETH as collateral for a $75 million DAI loan, had a liquidation threshold at $1,793, while the second, holding 64,792 ETH, faced a trigger price of $1,787Ethereum Whales Face $238M Liquidation Risk as ETH Declines^[3]. These scenarios highlighted the fragility of leveraged positions in a rapidly shifting market.

Analysts remain divided on Ethereum’s near-term trajectory. Some draw parallels to June’s price action, suggesting a potential rebound to $7,000 after a temporary dip to $3,750. Others, like Benjamin Cowen of Into The Cryptoverse, anticipate a shift of capital back to Bitcoin, with ETH’s dominance expected to wane temporarily as investors seek safer assetsWhat Are Whales Doing as Ethereum Price Falls Below $4,000?^[2]. Meanwhile, the broader DeFi sector faces challenges, with Ethereum’s DeFi total value locked (TVL) declining to $50 billion from $66 billion at the start of 2025, reflecting waning confidence in the ecosystemEthereum Whales Face $238M Liquidation Risk as ETH Declines^[3].

The market’s volatility has also sparked debates about the onset of a bear market. While Ethereum’s struggles are acute, Bitcoin’s performance remains a critical factor. A decline in Bitcoin’s price below key support levels could exacerbate the downturn, drawing capital away from altcoins and intensifying selling pressureHas Bitcoin Really Entered a Bear Market? Analyst Weighs In^[6]. However, Ethereum’s technical indicators, such as its position relative to the 200-day moving average and historical support levels like $69,354, suggest potential stabilization if buyers step in.

As the market digests these developments, the interplay between institutional strategies, regulatory shifts, and macroeconomic factors will likely shape Ethereum’s path. For now, the liquidation events and whale activity underscore the precarious balance between risk and reward in a crypto landscape increasingly defined by leveraged speculation and strategic accumulationEther Whale Books $45M Loss as ETH Falls Below $4K^[1]What Are Whales Doing as Ethereum Price Falls Below $4,000?^[2]Ethereum Whales Face $238M Liquidation Risk as ETH Declines^[3].