Whales Accumulate as Ethereum Falls Below $4,200 Support

Ethereum (ETH) experienced a sharp decline in the past 24 hours, dropping 7.08% to $4,152.70 as it broke below the critical $4,200 support level. This move triggered widespread liquidations across the cryptocurrency market, with altcoin positions totaling over $1.7 billion wiped out in the same periodEthereum drops 7% below $4,200 amid liquidations, rising macro pressure^[1]. The sell-off reflects broader macroeconomic pressures, including persistent inflation and uncertainty around Federal Reserve rate hikes, which have dampened investor sentimentEthereum drops 7% below $4,200 amid liquidations, rising macro pressure^[1].

The drop follows a week of consolidation below $4,500 resistance, with sellers gaining control of the market dynamic. The breach of $4,200 increases the risk of further corrections, though on-chain data reveals a divergence between short-term traders and long-term holders. Over 420,000 ETH has been withdrawn from exchanges this week, signaling accumulation by institutional and whale investors. These movements suggest coins are being moved to cold storage, reducing immediate supply pressure on exchangesEthereum drops 7% below $4,200 amid liquidations, rising macro pressure^[1].

Technical indicators highlight the bearish momentum. Ethereum now trades below both the 20-day exponential moving average and the $4,200 support level, while the Relative Strength Index (RSI) has fallen to 39.4, nearing oversold territory. Analysts note that while values below 40 typically precede rebounds, current momentum remains firmly bearish. Key support zones are now at $3,800–$4,000, with further declines potentially extending to $3,700–$3,800 if selling intensifiesEthereum drops 7% below $4,200 amid liquidations, rising macro pressure^[1].

Market participants are closely monitoring ETF outflows and macroeconomic data as potential catalysts for Ethereum’s next move. Exchange outflows have remained steady, with large investors maintaining a cautious stance amid global uncertainty. Meanwhile, ETF outflows have exacerbated selling pressure, as institutional flows often serve as barometers for broader market sentimentEthereum drops 7% below $4,200 amid liquidations, rising macro pressure^[1].

The immediate focus is on Ethereum stabilizing above $4,150 and defending the $3,800–$4,000 support zone. A failure to hold these levels could open the door for deeper corrections. However, accumulation trends by long-term holders suggest any near-term weakness may be temporary. Analysts remain bullish on Ethereum’s long-term potential, with price targets as high as $10,000 for the current cycleEthereum drops 7% below $4,200 amid liquidations, rising macro pressure^[1].