Ethereum’s price has crashed to $4,063 amid massive liquidations that witnessed ETF giants BlackRock, Fidelity, and Grayscale offload more than $422 million worth of Ethereum within 24 hours.
The dramatic sell-off has left ETH bulls in a state of confusion, with many questioning whether this signals the conclusion of Ethereum’s impressive 200% rally that captivated investors in recent months.
Data from SoSoValue reveals that the August 19 outflows represent the third straight trading session of negative performance for these ETFs, marking their second-largest single-day exodus since their market debut.
Ethereum Price Crash Sees Traders Get Rekt Harder Than Bitcoin
Fidelity spearheaded the withdrawals with $156.32 million in outflows, while Grayscale contributed $122.05 million and an additional $88.53 million through its dual fund offerings.
Source: SosoValueBitwise recorded $39.8 million in redemptions, as smaller players, including VanEck and Franklin Templeton, registered more modest outflows between $3.03 million and $6.29 million.
Over this three-day downturn, these funds have collectively shed approximately $678 million.
These massive outflows have reversed a month-long pattern of positive inflows and Ethereum accumulation by these major firms, occurring alongside broader market weakness that has undermined ETH’s momentum.
Following Ethereum’s recent local peak near $4,800, the cryptocurrency experienced a sharp rejection before testing support at $4,063.
However, it has since recovered to approximately $4,223 as of publication.
Nevertheless, underlying weakness persists as centralized exchanges like Binance continue aggressive ETH selling to force liquidations among leveraged long positions.
The selling pressure has resulted in Ethereum recording the highest liquidation volume over the past 24 hours, with losses exceeding $172.9 million, $70 million more than Bitcoin’s liquidations during the same timeframe.
Source: CoinglassThis cascading effect has intensified retail panic, with long position holders suffering approximately $127 million in losses during yesterday’s trading session alone.
Data from Lookonchain identified a prominent trader who maintained a long ETH position but was liquidated during the market crash, resulting in a devastating $6.22 million loss.
The trader had remarkably grown an initial $125,000 investment during April’s market lows to a peak value of $43 million, only to surrender four months of gains within just two trading days.
The liquidation event triggered additional whale selling, as Arkham Intelligence data shows three major holders collectively disposed of $148 million worth of Ethereum yesterday, intensifying the market-wide sell-off.
Tom Lee’s Bitimine $220M Ethereum Purchase Signals Rally Continues
However, corporate Ethereum treasuries like Tom Lee’s Bitmine have emerged as contrarian buyers, stepping in to purchase the dip.
During yesterday’s selling frenzy, Bitmine acquired 52,475 ETH (valued at $220 million), expanding their total Ethereum reserves to 1,575,848 ETH (worth approximately $6.6 billion).
This strategic accumulation follows recent insights from Bitmine Chairman and Fundstrat Capital CIO Tom Lee, who predicted Ethereum would decline to $4,075 and present an attractive buying opportunity before resuming its rally toward levels above $5,000.
Michaël van de Poppe, macro economist and CIO of MN Fund, also shared Lee’s optimistic outlook, suggesting that the $4,000-$4,200 range represents an ideal accumulation zone for ETH before a potential 10% bounce leading to price discovery toward new all-time highs.
Ethereum Technical Breakdown: Will $4,150 Support Hold or Crack Under Pressure?
From a technical perspective, the ETHUSD daily chart shows that the price recently dipped to fill a CME gap in the 4,150–4,200 zone, where it found strong support and bounced.
The structure suggests that this area is now acting as a key demand zone, reinforced by the rejection wicks and renewed buying pressure.
The 9-day SMA at 4,428 is overhead resistance, and a daily close above it would confirm momentum shifting back toward the bulls.
RSI has recovered from near-neutral levels and is climbing again, showing improving strength without being overbought.
If price holds above 4,150, the next logical move is toward the 4,430–4,540 resistance band, and a breakout above that level would likely resume the larger rally with potential to extend toward 4,600 and beyond.
Conversely, a loss of 4,150 would weaken this bullish setup and expose downside risk toward 4,000.
Overall, the bias remains upward as long as the bounce holds.
The post Ethereum Crashes to $4,063 as BlackRock, Fidelity, Dump $422M Worth of ETH – Rally Over? appeared first on Cryptonews.
