The liquidation of $ 470 million from Ethereum is not again Augustus: this is why this drop feels different

The latest liquidation event from Ethereum can look the same on the surface as the flushing of Augustus, but the underlying market pattern tells a completely different story.

Data suggesting that the previous Wipeout Reset-Hefarage operation in a copper-controlled uptrend, while this week’s crash unfolded in a bearish setup dominated by sellers.

Ethereum flashback? Not completely

In the past two months, the network has only been two large liquidations more than $ 400 million witnesses.

On August 14, the $ 444 million from Ethereum came in long liquidations in the midst of a buyer -dominated environment. Open interest was $ 29 billion and the financing percentages were positive at +0.013. This indicated aggressive long positioning and high leverage. The subsequent price fall led to a step -by -step liquidation of overloaded lungs, but the wider upward trend remained intact.

During that period the price closed above the EMA 20, SMA 50 and AVWAP levels and confirmed that buyers still had structural control.

Fast forward to September 22, when long liquidations reached $ 467 million, and the setup was remarkably different. Open interest, for example, was demolished to $ 27.3 billion, while the financing went somewhat negatively to -0.0020. This showed more pressure to retain or to add short positions.

Although financing had been positive in the days prior to the sale, the sudden Flip meant that Bears began to dictate the direction. Technically, Ethereum could not defend the most important support around the area as 5 °, because the price under the EMA 20, SMA 50 and critical AVWaps closed that once acted as a safety net for buyers.

Cryptoquant said That this breakdown indicated that sellers had taken control of the trend and what a routine shake out could have been converted into a deeper structural shift.

A liquidation of $ 400 million in a bull-leaning market only reset the leverage, while the same size can accelerate the downward momentum in a context driven by sellers.

Beerarish predicts

Ethereum stays in a fragile zone. The actively slipped under $ 4,000 on Thursday before he recovered slightly above the level. Experts, including analysts ‘Sykodelic’, are now expecting a correction that could push the prices to $ 3,500, and intermediate supports are at $ 3,800- $ 3,900, because transmitted signals and historical drawings coordinate.

However, figures on the chain also reveal significant whale accumulation and shrinking exchange possession, which show that larger investors benefit from weakness. This indicates a shaky prospect in the short term.