Altcoins News

Story: Ethereum Drops Below $4,000 – 6 Factors Driving the Selloff

By Dan Saada

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Strong US Dollar and Fed Caution Weigh on ETH. The recent surge of the US dollar has put additional pressure on risk-on assets like Ethereum.

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High Leverage Triggers Forced Liquidations. Leverage has played a significant role in amplifying Ethereum’s downward momentum.

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Low Trading Volume and Shallow Order Books. Weekend trading and lower liquidity have magnified Ethereum’s price swings.

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Technical Resistance and Bearish Momentum. Ethereum has struggled to break through strong technical resistance in the $4,500–$4,600 range.

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Regulatory Headwinds and ETF Outflows. Uncertainty around global cryptocurrency regulation has also weighed on Ethereum sentiment.

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Reduced Staking Inflows and Validator Exits. Ethereum’s network fundamentals have also played a role in the recent selloff.

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Outlook: Can Ethereum Rebound?. Despite the current momentum against Ethereum, several analysts remain cautiously optimistic about…

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Ethereum (ETH) slipped below the $4,000 mark on Thursday, marking the first time the token has fallen beneath this level since August 8.

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Leverage has played a significant role in amplifying Ethereum’s downward momentum. On September 22, over $500 million in ETH long positions were liquidated within 24 hours,…

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Weekend trading and lower liquidity have magnified Ethereum’s price swings. Thin order books and low volume made it easier for sell orders to push prices sharply downward.

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Uncertainty around global cryptocurrency regulation has also weighed on Ethereum sentiment. The Markets in Crypto Assets (MiCA) framework in the EU, coupled with ongoing…

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Ethereum’s network fundamentals have also played a role in the recent selloff. Validator exit queues have surged while staking inflows have slowed, weakening natural buy-side…

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Crypto commentator Ted Pillows highlighted that the increase in global M2 money supply could provide a tailwind for ETH, potentially driving it toward $20,000 over the longer term.

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As of press time, Ethereum trades at $3,959, down 3.6% in the past 24 hours. Investors are advised to monitor key support levels at $3,900–$4,000 and watch for liquidity and…

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