ETH Dives Again: Can Eth Bounce Back To $5000?

Ethereum is trading around $4,005, having dipped below the $4,000 mark amid a major market correction and heavy liquidation of leveraged positions.

The downturn has shaken sentiment, but underlying interest and whale activity suggest some buyers are seeing opportunity.

ETH Next Target

• Price: $4,005
• Market Cap: (approx, based on circulating supply)
• 24-Hour Trading Volume: Elevated amid volatility
• Circulating Supply: ~120.7 million ETH
• Total / Max Supply: No fixed cap

 Price made a new ATH of $4,956, above prior ATH from Nov 2021. Pullback near $4K support level could be a swing trade entry in Uptrend with +20% potential upside back to $4.9K.

Data from the Ethereum Validators Queue shows that the ETH unstaking backlog now spans 43 days, with over 2.48 million ETH, valued at approximately $11.3 billion, awaiting withdrawal. This selling pressure may keep a lid of ETH price for weeks ahead. 

Key Indicators & Market Signals

• ETH fell ~3-4% over the past 24 hours, crossing below the psychological $4,000 threshold.
• Over $140 million worth of ETH long positions were liquidated, including a major whale loss of $45.3 million.
• Despite outflows in ETF vehicles, 10 whale wallets reportedly withdrew 210,452 ETH (~$862 million) from exchanges—sign of accumulation.
• Support levels near $3,800–$3,900 are being tested. A break below could deepen the slide; a recovery above $4,200 may reignite momentum.

Latest News Highlights

• ETH’s drop triggered large forced liquidations; many long positions were overleveraged.
• Whale accumulation continues in parallel, creating a tug-of-war between panic selling and strategic buying.
• Analysts suggest the correction is a “leverage wash” more than a collapse of fundamentals, possibly paving way for a stronger base.

Conclusion

Ethereum is trading near $4,005, under pressure from liquidation events and sentiment shifts. Key support is in the $3,800–$3,900 zone; resistance to reclaim lies at $4,200+. The mixed dynamic of institutional outflows and whale accumulation suggests volatility ahead. If ETH recovers above $4,200, a bounce is possible; failure to hold support could lead to further decline.