Ethereum price is down by more than 5% today, trading around $4,300. This marks one of its sharpest daily drops in weeks. Yet, monthly gains remain intact at more than 13%, showing that the broader uptrend is not broken.
The question now is whether today’s fall is just noise or the start of something deeper. On-chain and technical signals suggest the dip may not last long, with profit booking easing and whales stepping in.
Profit Taking Eases As Whales Add $1 Billion ETH
The Spent Coins Age Band, which tracks when long-held coins are sold, has dropped to a month-low of about 135,000 ETH. This means that long-term holders are selling less — profit-taking has eased sharply compared to earlier in August, when the metric was above 525,000 ETH. That’s a 74% drop.
History shows that when this metric bottoms out, Ethereum often bounces. For example:
- On July 7, spent coins fell to 64,900 ETH, and the Ethereum price rallied from about $2,530 to $3,862 — a 52% jump.
- On August 17, the same pattern led to a 20% move, as ETH climbed from $4,074 to $4,888.
Now, the latest drop back to local lows may again suggest that the wave of selling is waning.
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Additionally, whales have been quietly buying the dip. Addresses holding over 10,000 ETH have increased their stash from 95.76 million ETH on August 27 to about 96 million ETH now.
At current prices, that means whales added roughly $1 billion worth of ETH in just two days. Together, easing profit booking and fresh whale accumulation give Ethereum a base for the next leg higher.
Ethereum Price Action and Liquidation Map Align At Key Levels
Beyond on-chain signals, the charts also align with the uptrend view. On the Bitget liquidation heat map, short position stacking starts at $4,400, which makes the level a critical pivot.
If ETH manages a daily candle close above $4,406, it could trigger liquidations of those shorts, forcing traders to buy back and pushing the Ethereum price higher.
Liquidation mapping shows where traders have placed heavy leverage positions (longs and shorts) and at what price levels liquidations would occur.
On the downside, immediate support sits around $4,255, which aligns with the $4,242 level on the liquidation map. This is the level where the most leveraged long positions get liquidated.
Therefore, if the Ethereum price manages to hold at $4,255, a dip reversal might be likely as leveraged downside risk weakens.
If the ETH price breaks below that, the next key level is $4,064. A dip under this level would likely flip the trend bearish in the short term.
The alignment between liquidation clusters and price chart levels adds credibility to these zones. It means traders are all watching the same numbers, making the reaction at these points even stronger.
For now, the path is clear: hold above $4,255 and reclaim $4,406, and the case for a reversal strengthens. Fail at those levels, and the Ethereum price risks extending its dip.
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