Ethereum declined 3.5% over the past 24 hours, underperforming the broader crypto market’s 1.3% loss.

The drop brought ETH close to the $4,000 threshold, with intraday lows testing that support zone. The downturn has been fueled by three main factors: heavy liquidations, renewed ETF outflows, and a technical breakdown.

Leverage unwinds intensify sell pressure

Over $1.8 billion in crypto longs were liquidated on September 23, and Ethereum accounted for roughly $504 million of that figure. Hawkish comments from Federal Reserve Chair Jerome Powell triggered a broader risk-off move in financial markets.

With ETH futures open interest stretched near all-time highs, the fall below $4,200 sparked cascading liquidations. Funding rates have since turned negative, signaling ongoing bearish positioning.

ETF flows turn negative

Ethereum exchange-traded products saw $140.8 million in net outflows on September 24, extending a two-day streak of withdrawals. That reversed the prior week’s strong inflows of nearly $300 million. The pullback suggests some institutions are taking profits following ETH’s 65% three-month rally. Even so, ETFs still hold about 6.3 million ETH, worth $25.4 billion, which provides underlying demand and limits deeper downside for now.

Support under pressure

Ethereum’s chart shows the breakdown began with a loss of $4,100 support. Once that level gave way, sell orders accelerated, pushing ETH to test the $4,000 zone. While bulls managed to hold the line in early trading, momentum remains weak. A decisive close under $4,000 could risk another leg lower, while a rebound above $4,100 would help restore confidence.

Outlook

Ethereum’s retreat underscores how leverage, institutional flows, and technical signals can combine to drive sharp intraday moves. Traders are watching ETF data and futures positioning for signs of stabilization. Until ETH regains $4,100, the $4,000 mark will remain the key battleground.