130,000 people liquidated in 24 hours! Cryptocurrencies continue to plummet as Ethereum falls below the $4,000 mark.

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Ethereum fell below the $4,000 mark on Thursday, hitting a nearly seven-week low, continuing the substantial cryptocurrency pullback seen this week. The total cryptocurrency market has lost over $140 billion in market value.

On Thursday (September 25), Ethereum, the world’s second-largest cryptocurrency, dropped as much as 4.7% to a low of $3,969, while Bitcoin also fell 1.7%.

According to Coinglass, nearly 130,000 people worldwide were liquidated in the past 24 hours, with the total amount of liquidations exceeding $400 million.

A cooling of institutional capital inflow has intensified selling pressure. Since Monday, investors have withdrawn nearly $300 million from US-listed Ethereum ETFs. On Monday alone, a sudden market drop forced $1.7 billion worth of long bets to be liquidated, impacting nearly all mainstream cryptocurrencies.

According to Rachael Lucas, a cryptocurrency analyst at BTC Markets, Ethereum’s pullback is due to "a cooling of institutional inflows" and "technical indicators showing short-term pressure." Lucas warned that if Ethereum drops below $3,800, more liquidations are expected.

Although the supply of Ethereum on exchanges has fallen to a nine-year low, suggesting long-term holders are accumulating coins, the selling by long-term holders has offset the positive effect of new capital inflow, putting Ethereum in a tug-of-war between bullish and bearish forces.

Long-term holder sell-offs offset positive signals

While the supply of Ethereum on exchanges has continued to decline to a nine-year low, indicating investors are withdrawing tokens from centralized platforms for long-term holding, the market still faces selling pressure from long-term holders.

In the past month, investors have accumulated purchases of over 2.7 million Ether, valued at more than $11.3 billion, reflecting strong confidence in Ethereum’s long-term potential.

However, Ethereum’s activity indicators have been trending upward. This metric, which measures long-term holder behavior, usually rises when these investors are selling rather than accumulating.

Analysts point out that the selling by long-term holders has offset the bullish momentum brought by new funds, leaving Ethereum in a stalemate between two opposing market forces.

If long-term holders continue to sell off large amounts, Ethereum’s price may fall further, potentially testing the $3,910 level, which would thoroughly shatter the current bullish expectations.

Risk Warnings and DisclaimerThe market carries risks, and investments should be made cautiously. This article does not constitute personal investment advice and does not take into account the individual user’s specific investment objectives, financial situation, or needs. Users should consider whether any opinions, views, or conclusions in this article are appropriate to their own circumstances. Investment is at your own risk. ```