The altcoin market faced a severe stress test on September 22-23, 2025, as a wave of leveraged liquidations triggered a sharp selloff, wiping out approximately $8 billion in open interest for altcoins—more than five times the $1.5 billion reduction seen in Bitcoin. Ethereum, the second-largest cryptocurrency, slipped below the $4,200 level after peaking near $4,500, while Solana and other major altcoins shed over 10% of their value within hours.
Analyst Maartunn highlighted that the altcoin flush accelerated, indicating that overleveraged positions were forced out of the market. The total crypto market cap dipped below $4 trillion to around $3.98 trillion, with altcoins outside the top 10 facing a critical juncture; their aggregate valuation stands at $305 billion, struggling against resistance near $320 billion. Technical indicators show the Relative Strength Index (RSI) for Ethereum rebounding from oversold territory to 47.82, suggesting cooling bearish momentum, but failure to reclaim $4,300-$4,350 could lead to further declines toward $3,800.
Solana dropped from $235 to around $219, with its RSI at 45, indicating tentative buyer interest. Hyperliquid (HYPE) fell from $56 to $48.7, though its RSI rebounded sharply to 53.66, while Binance Coin (BNB) corrected from above $1,060 to $997, with RSI at 48. The event has sparked debate on whether this is a healthy reset or the start of a deeper corrective phase, with key support levels like $280 billion for the broader altcoin market being closely watched.