Ethereum (ETH) price dropped below $4,000 today, leading to a 4.12% dip in its gain over the last 24 hours. Despite a 54% increase in trading activity, the sudden fall erased $22 billion from its market valuation in just a few hours.
At the time of writing this report, ETH was trading for $3,998, adding to its 12% drop for the week, with its current market cap sitting at $482.61 billion, according to CoinMarketCap.
According to Lookonchain, a whale with the wallet tag “0xa523” took a massive loss. The trader had a large position of 9,152 ETH in a long position trade. When the price dropped, his position was totally liquidated, costing him $45.3 million. Lookonchain reported that less than half a million dollars was left in the account after the liquidation.
Meanwhile, the spot ethereum ETF was also affected by the drop, with outflows reaching $296 million this week alone. In addition, centralized exchange reserves also dropped to their lowest level since 2016, with just 14.8 million ETH held, according to Glassnode.
However, some investors are taking the opportunity to buy the dip. Ten new wallets reportedly purchased 201,000 ETH tokens worth about $855 million. According to Crypto analyst Zyn, this kind of buy “often happens when ETH is getting closer to a bottom.”
Moreover, Strategist Ted believes ETH could still reach $10,000 this bull cycle, with $3,800 as a good buying level. Tom Lee of BitMine Technologies said he also expects a rally to $12,000–$15,000 by year-end.