Ethereum (ETH) has faced significant price turbulence after breaking its all-time high of $4,934, with a recent decline of over 5% pushing it below $4,200. This drop occurred despite substantial institutional accumulation, notably from BitMine, which purchased over $1 billion worth of ETH last week. BitMine now holds 2.416 million ETH, representing more than 2% of the total supply and valued at approximately $10.1 billion, cementing its position as the largest corporate ETH holder globally.
Concurrently, short-term traders have increased their bearish bets, leading to a precarious setup where Ethereum faces the largest potential liquidation volume among altcoins. Data from Glassnode indicates that if ETH rebounds to $4,500, shorts worth around $4.4 billion could be liquidated; a recovery above $4,900 might wipe out nearly $10 billion in short positions. In contrast, a drop to $3,560 could trigger only about $900 million in long liquidations, highlighting an imbalance favoring a short squeeze.
Amid the selloff, institutional interest remains robust. BlackRock's Ethereum ETF recorded $512 million in net inflows last week, even as ETH fell 15% in 24 hours and tested crucial support at $4,000. This decline triggered over $1.5 billion in liquidations, the largest wave in six months. Technical analysis shows ETH is oversold, with the RSI at 28, suggesting a potential bounce. Key resistance levels are at $4,220 and $4,360, while the Federal Reserve's recent 25-basis-point rate cut—with another expected next month—could bolster risk appetite.