{"id":51108,"date":"2025-09-26T10:03:34","date_gmt":"2025-09-26T10:03:34","guid":{"rendered":"https:\/\/crypto-globe.com\/?p=51108"},"modified":"2025-09-26T10:06:27","modified_gmt":"2025-09-26T10:06:27","slug":"ethereum-under-pressure-excessive-sell-off-or-the-beginning-of-a-larger-correction","status":"publish","type":"post","link":"https:\/\/crypto-globe.com\/en\/ethereum-under-pressure-excessive-sell-off-or-the-beginning-of-a-larger-correction\/","title":{"rendered":"Ethereum under pressure. Excessive sell-off or the beginning of a larger correction?"},"content":{"rendered":"\n

The sharp drop in the price of Ethereum caused panic that swept across the entire cryptocurrency market. However, according to analysts, this is not a sign of deeper structural weakness. On the contrary, available data show that institutional investors may play a key role in further price developments.<\/strong><\/p>\n\n\n\n

Rapid decline in the price of Ethereum<\/h2>\n\n\n\n

Ethereum<\/a> fell by more than nine percent in less than 12 hours, with leveraged long positions worth over half a billion dollars being liquidated. Nevertheless, buyers quickly appeared and began buying near the $4,150 mark. According to traders, the question is whether this was an exaggerated market reaction or whether there is room for a further decline below the psychological level of $4,000.<\/p>\n\n\n\n

The price development of Ethereum practically coincided with the movement of other major altcoins<\/a>, suggesting that the Ethereum ecosystem itself is not suffering from specific problems. The liquidation of futures contracts rather reflected high open interest and more frequent use of derivative instruments. Total open interest in futures contracts remained stable, signaling that capital is not leaving the market but is being regrouped.<\/p>\n\n\n\n

Weakening bullish confidence, but institutions hold out hope for growth<\/h2>\n\n\n\n

However, other indicators suggest weakening bullish confidence. The annual premium on monthly Ethereum futures contracts fell to its lowest level in three months, and the financing rate on perpetual futures also fell into negative territory in the short term. Nevertheless, there is no reason to talk about extreme panic \u2013 the ratio of put and call options on the Deribit<\/a> exchange remained close to the long-term average, indicating balanced expectations among traders.<\/p>\n\n\n\n

The weekend slump was therefore most likely not caused by derivative positions, but rather by panic selling that affected the entire cryptocurrency market. Analysts also emphasize that hopes for a return to higher prices remain thanks to institutional investors<\/a> and growing interest in spot ETF products. These factors could support Ethereum’s rebound back to the $4,600 mark.<\/p>\n","protected":false},"excerpt":{"rendered":"

The sharp drop in the price of Ethereum caused panic that swept across the entire cryptocurrency market. However, according to analysts, this is not a sign of deeper structural weakness. On the contrary, available data show that institutional investors may play a key role in further price developments. Rapid decline in the price of Ethereum […]<\/p>\n","protected":false},"author":2,"featured_media":51101,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"yasr_overall_rating":0,"yasr_post_is_review":"","yasr_auto_insert_disabled":"","yasr_review_type":"","footnotes":""},"categories":[162],"tags":[110,93,238],"class_list":["post-51108","post","type-post","status-publish","format-standard","has-post-thumbnail","category-crypto","tag-crypto","tag-cryptocurrencies","tag-ethereum-3"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t