Ethereum Price Plunges 6% as $1.7 Billion in Liquidations Sweep the Crypto Market

Highlights:

• The Ethereum price has dropped 6% as the crypto market is experiencing a ‘blood bath.’
• The Ethereum price has accounted for 70% of $1.7 billion in liquidations over the past 24 hours.
• Oversold conditions and rising trading volume could ignite a buy-back campaign in the ETH market.

The crypto market has kicked off the week in the red zone, as the Ethereum price drops to $ 4,184, marking a 6% decrease. Despite the fall, its daily trading volume has soared 147% to $44 billion, indicating growing market confidence. As Ethereum began to lose its dominance, a surge of trading activity shifted towards other altcoins in the market.

Ethereum’s recent market activity suggests that the altcoin rotation has lasted longer than expected, according to the altcoin’s market positioning. According to CryptoQuant, the graph illustrates the dominance of Ethereum in the market. In the past, Ethereum has had better performance. But after the most recent downturn, traders have opted for other assets in the ecosystem.

Altcoin Rotation is Gradually Coming to an End

“Ethereum’s volume dominance began to decline, and trading activity started to flow into other altcoins… Now, however, the altcoin rotation has lasted longer than expected, and this pattern has clearly emerged.” – By @mignoletkr pic.twitter.com/beGiOhh85l

— CryptoQuant.com (@cryptoquant_com) September 22, 2025

Even with the bearish trend, Ethereum is giving a great performance in the larger ecosystem. Recently, new data revealed that Ethereum is being threatened by altcoins. As more altcoins attract the interest of traders and investors, Ethereum has been forced downwards.

The soothing effect of the market conditions, along with Ethereum’s gradually slowing growth, is proving to be a significant turning point for Ethereum dominance. Investors want to see if Ethereum regains its lustre. Will altcoins continue to steal the limelight from Ethereum?

The Current Market Sentiment and Ethereum Price Action

Within just 24 hours, $1.7 billion in Ethereum (ETH) and Bitcoin (BTC) have been liquidated, with ETH suffering the biggest hit. Ethereum alone was the target of over 70% of liquidations compared to BTC. The green colour of the heatmap indicates a significant liquidation of Ethereum. Overall, $499.66 million worth of ETH were liquidated.

In the last 24 hrs, $1.7B Have been wiped out in liquidations.$ETH accounted for over 70% of the pain vs $BTC. https://t.co/YXrUg8RpSi pic.twitter.com/iTroZrn7GI

— Kyledoops (@kyledoops) September 22, 2025

Liquidations of this size are indicative of a correction and rising volatility. The heatmap shows other cryptos like Dogecoin (DOGE), Solana (SOL), and XRP, but none of them come even close to ETH’s share. Recent events show traders struggling with Ethereum’s price action after a major liquidation event.

What’s Next for ETH?

The ETH/USD daily chart shows that the altcoin has moved into a consolidation phase. This may act as an accumulation period before the bulls spike out in a significant leg up. Currently, the key support zone sits at $2890, as the bulls need to overcome the key resistance at $4376. 

Ethereum appears oversold, with the relative strength index (RSI) reading 39.98. If the bulls ignite a buy-back campaign at this level, a strong rally could emerge soon. At the same time, the MACD indicator is showing a strong sell signal, as the orange signal line flips above the blue MACD line.

Looking at the bigger picture, Ethereum’s 6% drop signals caution as intense selling pressure is evident. Investors might want to keep their eyes peeled for a volume spike, as low-volume breakouts are fakeouts. If there is a clean break above $4376, the path to reclaim the $4700 and beyond looks likely. Conversely, if the dip continues, the Ethereum price could plummet towards $3970.