Whales Increase Holdings as Ethereum Drops Under $4,200 Support Level

Ethereum (ETH) saw a significant drop over the last day, falling 7.08% to $4,152.70 after slipping beneath the crucial $4,200 support mark. This decline led to widespread liquidations throughout the crypto sector, with more than $1.7 billion in altcoin positions being erased during the same timeframe Ethereum drops 7% below $4,200 amid liquidations, rising macro pressure [ 1 ]. The sell-off is largely attributed to ongoing macroeconomic challenges, such as stubborn inflation and uncertainty regarding future Federal Reserve interest rate decisions, both of which have weighed on investor confidence Ethereum drops 7% below $4,200 amid liquidations, rising macro pressure [ 1 ].

This downturn comes after a week of sideways trading below the $4,500 resistance, with sellers taking the upper hand. Breaking below $4,200 raises the likelihood of additional downward movement, though blockchain data shows a split between short-term traders and long-term holders. Over 420,000 ETH has been pulled from exchanges in the past week, indicating that institutional and large-scale investors are accumulating. These transfers suggest coins are being moved into cold wallets, which reduces the immediate selling pressure on exchanges Ethereum drops 7% below $4,200 amid liquidations, rising macro pressure [ 1 ].

Technical analysis points to continued bearish momentum.

is now trading under both the 20-day exponential moving average and the $4,200 support threshold, while the Relative Strength Index (RSI) has dropped to 39.4, approaching oversold levels. Experts observe that RSI readings below 40 often precede a bounce, but the prevailing trend remains negative. The next major support areas are between $3,800 and $4,000, and if selling pressure increases, prices could fall further to the $3,700–$3,800 range Ethereum drops 7% below $4,200 amid liquidations, rising macro pressure [ 1 ].

Traders are watching ETF outflows and macroeconomic reports for clues about Ethereum’s next direction. Outflows from exchanges have stayed consistent, with major investors remaining cautious amid global instability. At the same time, ETF outflows have added to the selling pressure, as institutional flows are often seen as indicators of overall market mood Ethereum drops 7% below $4,200 amid liquidations, rising macro pressure [ 1 ].

The immediate priority is for Ethereum to hold above $4,150 and maintain support in the $3,800–$4,000 range. If these levels fail, the market could see deeper pullbacks. Still, the ongoing accumulation by long-term holders suggests that any short-term weakness might not last. Many analysts continue to be optimistic about Ethereum’s prospects, with some projecting prices could reach as high as $10,000 in this cycle Ethereum drops 7% below $4,200 amid liquidations, rising macro pressure [ 1 ].