Ethereum Longs at Risk? Analyst Warns of Recurring Weekly Liquidation Pattern

3 hours ago

Ethereum (ETH) precocious broke done to a caller all-time precocious supra $4,900 earlier undergoing a correction. As of now, the plus trades astatine $4,520, reflecting an 8.9% pullback from its highest but inactive up 7.6% implicit the past week.

The determination follows weeks of beardown upward momentum that returned ETH to terms levels unseen since the 2021 bull cycle. While Ethereum’s semipermanent inclination remains upward, analysts are examining short-term patterns to explicate the market’s existent volatility.

One specified position comes from XWIN Research Japan, a contributor to CryptoQuant’s QuickTake platform, highlighting however recurring liquidation cycles are shaping ETH’s terms action, peculiarly astir the opening of each week.

Ethereum’s “Monday Trap” and the Risks of Excessive Leverage

According to the analysis, Ethereum’s leveraged markets amusement a recurring bushed tied to liquidation events. Leveraged agelong positions, bets that the terms volition proceed rising, person often been caught successful abrupt reversals, forcing liquidations that amplify downward moves.

During April and June 2025, ETH saw agelong liquidations spike beyond 300,000 ETH successful a azygous time arsenic crisp downturns triggered cascading sell-offs. XWIN Research Japan noted a striking play pattern: Mondays consistently amusement the highest liquidation volumes, followed by Sundays and Fridays.

In contrast, Saturdays grounds the lowest, apt owed to reduced marketplace activity. This cycle, often referred to arsenic the “Monday Trap,” suggests that traders carrying leveraged positions from the play are peculiarly susceptible erstwhile organization and retail flows re-enter aboriginal successful the week.

“Carrying play optimism into Monday’s higher-volume sessions is risky,” the expert observed, emphasizing that short-term leverage magnifies losses successful predictable ways.

For semipermanent investors, this rhythm is little astir price direction and much astir knowing the risks of excessive leverage successful a highly liquid market.

Technical Levels and Broader Market Outlook

From a method standpoint, Ethereum’s terms correction is being intimately monitored. A marketplace expert known arsenic Crypto Patel precocious posted connected X that ETH has retraced from $4,957 to $4,400, noting $3,900–$4,000 arsenic a beardown enactment zone.

According to Patel, holding this level could unfastened a way toward higher terms ranges of $6,000–$8,000. However, if enactment breaks, downside levels of $3,500 oregon adjacent $3,200 stay possible.

🚨 $ETH Price Analysis 🚨

🔹 #Ethereum deed ATH of $4957 2 days ago, present retracing to $4400.
🔹 Strong enactment astatine $3900-$4000. Holding this portion opens upside to $6000-$8000.
🔹 Breakdown of $3900 could pb to $3500 and $3200 levels. pic.twitter.com/WJTdHEImqH

— Crypto Patel (@CryptoPatel) August 26, 2025

The enactment betwixt leveraged liquidations and cardinal method enactment levels whitethorn specify Ethereum’s trajectory successful the coming months. Historical information amusement that ample outflows from exchanges often precede sustained rallies, portion inflows typically awesome selling pressure.

Recent speech netflow information for ETH has leaned toward outflows, suggesting that investors are withdrawing coins into self-custody, a behaviour often associated with long-term confidence alternatively than contiguous selling.

At the aforesaid time, organization request for Ethereum continues to strengthen, bolstered by ongoing discussions astir staking integration wrong regulated fiscal products specified arsenic ETFs.