Ethereum Price Crash: ETH Dips Below $4K, Is the Bull Run Over?

Ethereum Price Crash: Will ETH Rebound?

The ETH rally has hit a roadblock as the price plummeted below the crucial $4,000 mark, sparking concerns of a potential Ethereum price crash. As the market navigates this volatility, investors are left wondering if the Ethereum bull run has finally come to an end.

Ethereum Price Crash

The Ethereum price is currently experiencing a significant downturn, plummeting below the critical $4,000 level, which it had maintained for the past two months. Just minutes before, the second-largest cryptocurrency had reached $3,993, marking a 2-month low.

Although the altcoin has managed to climb above the $4k mark once again, it is still trading in the red. At press time, the ETH price is at $4,026, down by 3.55% in a day. Over the past week and month, the crypto has seen more notable downturns, with its price registering dips of 12% and 9%, respectively.

Despite this Ethereum price crash, traders and investors are increasingly bullish about the token. Amidst this decline, the market is witnessing growing market activity, which is evident from the 14% hike in the 24-hour trading volume, currently at $38.77 billion.

Significantly, this surge in market sentiment indicates that investors view the current dip as a buying opportunity, potentially setting the stage for a rebound. This increased volume can be attributed to investors accumulating positions at lower prices, anticipating a future price recovery. Moreover, such a trend can also indicate a shift in market dynamics, where traders are positioning themselves for potential upside movements, despite the current downturn.

Liquidation Wipeout: Trader Loses $45.3M

In a related development, a prominent market player, identified as 0xa523, has been liquidated for a staggering $36.4 million after the Ethereum price crash. As noted by Lookonchain, this trader's long position of 9,152 ETH was fully liquidated, contributing to their total losses exceeding $45.3 mn. The aftermath leaves this trader's account with less than $500,000.

This liquidation highlights the volatility and risk in the cryptocurrency industry, particularly for traders leveraging large positions. In response to the recent plummet, a significant liquidation wave hit the space, with approximately $176 million worth of tokens liquidated on major exchanges like Hyperliquid, Bybit, and OKX. The majority of these liquidations, around $157 million, were long positions, while short positions accounted for $18.68 million. In just a 4-hour window, liquidations totaled $141 million, with long positions making up $135.75 mn and short positions $5.85 million.

What’s Next?

Despite this momentary downturn, analysts and experts are highly bullish about the largest altcoin. In an X post, Charting Guy predicted that the crypto would hit an ambitious $8,000 in December.

In addition, BitMine Technologies’ Tom Lee is holding a more bullish approach to ETH’s potential trend. He predicts a significant rally to $12,000-$15,000 by the end of 2025, potentially fueled by the Federal Reserve's anticipated rate cut. This forecast suggests a 200% surge in Ethereum's price during Q4 2025.