Ethereum Slides 20% – Why Did Whales Bet $1B on the Rebound?

Key Takeaways

Why did Ethereum drop near $4,000?

Ah, Ethereum. It was cruising along at $4,900-living the good life-when, out of nowhere, it slid down 20%, plummeting to nearly $4,000. All thanks to ETF outflows hitting $76 million. BlackRock decided to cash in a cool $15.1 million worth of ETH, and the market makers on Binance weren’t sitting idly by either. Oh no, they repositioned like it was a game of musical chairs.

What could drive ETH higher again?

But wait, there’s hope! A whale, clearly feeling brave (or possibly just a little reckless), opened a long position worth $1 billion. Add to that Ethereum’s trading volume spiking to $40.5 billion, and you’ve got a recipe for potential chaos. Analysts are talking about more sideways movement, but they’re also whispering about a potential rally in Q4. Let’s grab some popcorn and wait, shall we?

Ethereum [ETH] found itself as the punching bag in the latest market downturn, with a substantial 20% drop from its Q3 high of $4,900-just one week shy of the quarter’s end. Now it’s sulking near $4,000, like a child who lost their favorite toy. Institutions, those ever-dramatic players in the crypto world, have been shedding their Ethereum holdings like they’re trying to make space in their digital closets. But this kind of dip? Well, it’s not unheard of. In fact, it’s practically a tradition that these dips precede a good old-fashioned rally.

Institutions Dump ETH

It turns out that Binance was among the big institutional players dumping Ethereum like they just didn’t care. According to Wimar.X, market makers like Wintermute and Flow Traders took it upon themselves to scoop up millions of ETH from Binance, presumably at a discount. Meanwhile, BlackRock decided it was time to part ways with $15.1 million worth of ETH. As if that wasn’t enough, Ethereum ETF outflows surpassed $76 million in just 24 hours, with Fidelity and Bitwise leading the charge, collectively contributing $55 million. Can you say “massive repositioning”?

Now, here’s the kicker. This exact scenario has played out before, and, believe it or not, it usually marks a reversal point as the year-end approaches. Could it be déjà vu? Who knows-time will tell.

Analysts Predict More Chop

As of the time of writing, Ethereum was wobbling near $4,000, down from a once-glorious high of $4,900. So, what happens next? If ETH dips below the $4,000 mark, we might be in for a wild ride down to $3,800 or lower. But if it holds steady? Get ready for the potential rally of the century.

Enter analyst Michael van de Poppe, who predicts more of the same-sideways chop-before any signs of recovery. But fear not, dear reader! He’s confident that Ethereum won’t plummet to the depths of $3,550. Phew. What a relief, right?

And just to add fuel to the fire, van de Poppe pointed out that the 20-week MA was getting closer to the current price. This, my friends, is a signal that compression is building up-think of it as the calm before the storm.

To top it all off, this 20% dip? It’s being seen as the perfect “accumulation zone” for whales, who are clearly betting big on a future rebound.

Why Could an ETH Rally Be in the Build-Up?

Now, here’s the kicker. A whale, perhaps with a flair for drama, recently opened a massive $1 billion long position, holding 237,000 ETH. The trading volume? A jaw-dropping $40.5 billion, which, by the way, is $7 billion more than Bitcoin’s volume. Take a moment to let that sink in. Ethereum is, apparently, the new cool kid on the block.

In case you were wondering, this all looks eerily similar to the patterns seen in 2017 and 2020, according to CoinGlass data. If history decides to repeat itself, Ethereum could be gearing up for another impressive quarter-end performance. So grab your popcorn, folks-this drama isn’t over yet.

2025-09-23 23:14