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Ethereum Plummets After $4,950 Liquidity Grab: Is a Bigger Dump Coming?
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Ethereum Plummets After $4,950 Liquidity Grab: Is a Bigger Dump Coming?
Aug 25, 2025 6:52 AM

TL;DR

Ethereum was rejected at $4,950, liquidating $720M longs, now testing $4,500 support with $4,300 risk. Whales added $1.6B ETH this week, with demand zones aligned at $4,590–$4,760 Fibonacci cluster. Historical data shows September pullbacks often follow strong August gains, leaving ETH vulnerable below $4,500.

Ethereum Price Action

Ethereum surged to a new all-time high of $4,950 on August 24 before losing momentum. The token has since pulled back to around $4,550, down 4.5% over the past 24 hours, though still up 8% on the week. Since early August, ETH has climbed 26% and remains more than 220% above its yearly low.

Meanwhile, the reversal came during a wave of liquidations across the market. More than $720 million in positions were wiped out in the last day, with nearly $500 million tied to Bitcoin and Ethereum longs. The rejection near $4,950 triggered much of the flush.

Source: X

Liquidity Grab and Support Levels

Analyst Lennaert Snyder said Ethereum “took liquidity above $4,880 and flushed leveraged longs.” He added that ETH is “currently testing ~$4,500 support, but it doesn’t look strong.”

Snyder pointed to $4,693 as the key range low for bulls to reclaim quickly. A recovery above that level could open another move toward $4,880. If $4,500 fails, the chart suggests ETH could slide to $4,300, which marked the start of its last impulse higher.

$ETH took liquidity above $4,880 and flushed leveraged longs.

Currently testing ~$4,500 support, but is doesnt look strong.

Best case scenario for the bulls is to reclaim $4,693 rangelow asap.

If we lose here, Ethereum will probably retest the $4,300 start impulse. pic.twitter.com/Mkl4BtFizy

The $4,880 zone now acts as immediate resistance, while $4,500 remains under pressure.

Whale Buying and Institutional Flows

Large players have been active in recent sessions. Wise Crypto noted that whales added more than $1.6 billion worth of ETH this week, even as volatility increased. They described $4,590–$4,760 as a demand area that aligns with the 0.5 Fibonacci retracement at $4,780.

Wise Crypto highlighted $4,950 (0.618 Fib) as the resistance to clear. A break above that line could set a path toward $5,500, with checkpoints at $5,190 and $5,500.

At the same time, CryptoQuant analyst Darkfost pointed to continued whale accumulation on Binance.

“Since July, we have seen a significant increase in demand coming from Binance whales,” they wrote.

According to the analyst, their activity shows a preference for building positions after explicit trend confirmation, which could provide extra support if ETH attempts another push toward $5,000.

Source: CryptoQuant Ethereum’s rally in August has been strong, but historical trends indicate that September often brings corrections after a profitable August. Data from CoinGlass suggests the same could apply this year.

For now, ETH sits between critical levels: $4,690 on the upside and $4,500–$4,300 on the downside. A reclaim could reignite momentum toward $5,000, while failure may reinforce seasonal weakness.

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