Quick overview

Live ETH/USD Chart

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Ether dropped below $4,000 to its lowest in nearly seven weeks, continuing a broader sell-off in digital assets that has wiped out more than $140 billion in market value since the beginning of the week.

The second-largest cryptocurrency fell as much as 4.7% to $3,969 on Thursday, while Bitcoin, the market leader, declined 1.7%.
Investors have pulled nearly $300 million from US-listed Ether exchange-traded funds since Monday, when $1.7 billion in bullish bets were wiped out in a sudden downturn that impacted most major tokens. Lucas said she expects more liquidations if Ether’s price drops below $3,800.
Massive liquidations occurred earlier this week when ETH fell below $ 4,000, with $ 498 million in positions liquidated-

The broader market View reflects a growing correlation between cryptocurrencies and risky assets, evident in recent U.S. inflation data (core PCE is forecasted at 0.2% for August) and Federal Reserve comments following rate cuts. Bullish momentum is weakening as traders adjust to delays in reaching the 2% inflation target.

Technically, ETH formed lower highs and repeatedly tested the $4,200–$4,300 range earlier in September after failing to sustain above $4,500.

A multi-week consolidation was disrupted when ETH breached the $4,000 support level, with on-chain data showing $420 million in liquidations at that level. Despite the pain, ETH ETFs received $213 million in inflows yesterday, suggesting underlying fundamentals remain resilient.