Ethereum (ETH) is experiencing a market pullback, with traders selling off their positions at a rapid pace. This is evident from a massive $1.2 billion in sell volume over the last 24 hours, which caused the price to dip by 2.4% to around $4,272. This sell-off signals a shift in sentiment, as some investors are closing their bets on the price continuing to rise.
Adding to the pressure, trading volumes have halved and interest in leveraged bets is fading. This isn't entirely new; September has historically been a weak month for ETH, with past cycles in 2017 and 2021 also seeing significant price drops. Analyst Benjamin Cowen even suggests the price could retrace to the $3,500 level, following these historical patterns.
Despite this short-term turbulence, the long-term outlook remains strong. Large investors, often called "whales," are still buying. A recent report revealed a Bitcoin whale converted and staked $1 billion worth of ETH. Furthermore, new financial products, like spot ETFs, are absorbing more Ethereum than is being created, creating a foundation of long-term demand.
Technically, ETH is currently consolidating between $4,200 and $4,400. A break below $4,200 could lead to a slide toward $3,800, while a push above $4,600 could restore bullish momentum and pave the way for a retest of its all-time high of $4,946.
