Key Notes
- ETH price dropped below $4,000 earlier on September 25.
- A trader loses over $45 million after a $36.4 million long position is wiped out.
- Exchange reserves have fallen to a nine-year low, signaling a period of heavy institutional accumulation.
Ethereum ETH $4 033 24h volatility: 3.5% Market cap: $487.14 B Vol. 24h: $39.43 B slipped under the $4,000 mark earlier on Sept. 25, erasing around $22 billion in market cap within just a few hours. The sudden sharp correction triggered a wave of liquidations across the market.
According to Lookonchain, the most dramatic loss came from the trader 0xa523, whose entire 9,152 ETH long position, worth about $36.4 million, was completely liquidated.
ETH just dropped below $4,000!
The biggest loser, 0xa523, just got WIPED.
His entire 9,152 $ETH ($36.4M) long position was fully liquidated.
His total losses now exceed $45.3M, leaving him with less than $500K in his account. pic.twitter.com/JplqJl0cPy
— Lookonchain (@lookonchain) September 25, 2025
The trader’s total losses have now surpassed $45.3 million, leaving less than half a million dollars in the account.
At the time of writing, ETH is hovering near $4,030, marking a weekly drop of 12%. The sell-off has also been reflected in the performance of spot Ether ETFs, which have seen net outflows of $296 million so far this week.
Whales Accumulate, Exchange Reserves Plunge
Amid this short-term ETH price turbulence, whales are taking the opportunity to buy the dip. In the early hours of Sept. 25 alone, ten newly created wallets scooped up 201,000 tokens worth roughly $855 million.
Whales are aggressively buying $ETH now.
Today, 10 new wallets have bought 201K ETH worth $855 million from exchanges and OTC.
This often happens when ETH is getting closer to a bottom. pic.twitter.com/EUBMXE5cwZ
— ZYN (@Zynweb3) September 25, 2025
According to crypto commentator Zyn, such aggressive accumulation generally occurs when prices approach a potential bottom.
On-chain data shows that Ether reserves on centralized exchanges have fallen to their lowest level since 2016. Glassnode reports just 14.8 million ETH currently held on exchanges, down 20% since mid-July. It is less than half the amount held two years ago.
Data from CryptoQuant confirms a similar trend. It suggests that the exchange supply ratio, indicating available liquidity, has dropped to a nine-year low of 0.14. Analysts see this as a sign of strong institutional demand for Ether and long-term price confidence.
Long-Term Confidence Intact
Popular crypto strategist Ted believes that ETH could reach $10,000 in the current bull cycle. However, he cautioned that a correction was inevitable, pointing to the $3,800 level as a strong buying zone ahead of a potential fourth-quarter rally.
S&P 500 is at a new ATH.
Gold is at a new ATH.
But $BTC and $ETH are lagging.
I'm certain they'll catch up in Q4, but not without a dip.
Once that happens, the major rally will start. pic.twitter.com/U0nsDtjCGV
— Ted (@TedPillows) September 24, 2025
Meanwhile, BitMine Technologies’ Tom Lee also suggests ETH as one of the best crypto to buy right now. He recently predicted a rally to the $12,000-$15,000 zone by the end of the year.
Ether is currently trading around 18% below its all-time high of $4,953, recorded on Aug. 25. While the recent drop has shaken retail traders, seasoned investors believe the ongoing accumulation could result in a powerful rebound ahead.
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