Cryptocurrency Ethereum has failed the level of $ 4,000

Over the past day, Ethereum BTC $111,183.00 Mezo Wrapped BTC -0.99% Market capitalization $39.7 million VOL. 24 hours $1.5 billion lost 3.55%, which is significantly higher than the overall decline of 1.3% in the crypto market. During trading, the ETH price dropped to the support level of about $ 4,000, testing this psychological threshold. Analysts point to three key factors behind the decline: mass liquidations, outflows from ETFs, and a technical breakdown.

According to the derivatives market, on September 23, long positions worth more than $ 1.8 billion were liquidated, of which about $ 504 million were on Ethereum. Tough statements by Fed Chairman Jerome Powell triggered a wave of sales of risky assets, which provoked a cascading reaction in ETH futures. A drop below $ 4,200 triggered mass liquidations, and funding in the market moved into the negative zone, signaling that bearish sentiment persisted.

Additional pressure was created by outflows from Ethereum-based exchange-traded funds. on September 24, they recorded net outflows of $ 140.8 million, continuing a two-day decline. This wiped out the previous significant inflows, when the funds received almost $ 300 million in a week.

Experts explain that some institutional investors decided to take profits after ETH grew by 65% in three months. Nevertheless, the total assets of such products remain significant — about 6.3 million ETH worth $ 25.4 billion.

Thus, while the localized downturn and derivatives pressure continues, significant fund balances create underlying demand that limits the potential for further sharp price declines.