Ethereum Slides After Touching New ATH—Is a Bigger Dip Brewing?

Ethereum soared to an impressive $4,946—a fresh all-time high earlier this week—only to now slide back to around $4,713, marking an almost 5% drop from its peak.

So, what’s behind this sharp retracement? Let’s break it down:

What’s Happening Behind the Charts

1. Profit-Taking & Historical Patterns

It’s a familiar story: climb high, then take gains. Go back to 2017, 2020, and 2021—when Ethereum gained big in August, it consistently rolled over in September.

2. Liquidation Cascade

As ETH neared the $4,900 mark, over $216 million in long positions were liquidated—with nearly $130 million coming from long traders. These forced sell-offs help fuel downward momentum.

3. Ascending Channel Still Holds

Technical indicators paint a nuanced picture. ETH remains in a rising channel on the daily chart, supported by a bullish Supertrend and an RSI at 60—not yet overbought.

To stay bullish, ETH must reclaim $4,800. A close below $4,349 could trigger a steeper slide.

4. Whale Activity & Institutional Moves

Despite the pullback, big players are still bullish. Over the past week, whales accumulated 350,000 ETH (~$1.67 billion), signaling confidence.

5. ETF Liquidity Dynamics

The crypto landscape has matured—spot ETH ETFs and corporate treasury holdings are now part of the picture, introducing more stability than previous cycles.

Final Thoughts

Ethereum’s recent drop is far from unexpected. It reflects a healthy market that’s balancing momentum with caution. If ETH holds above support around $4,600–$4,680, there’s still space to consolidate before making another run. However, a breakdown below $4,349 could open the floodgates toward $4,200 or lower.

For the long-term, institutional interest and ETF adoption make this cycle feel more solid—and potentially more sustainable—than previous ones.

Stay tuned for updates—this is just the beginning of ETH’s next chapter.