Ethereum Price Dip Wipes Out Millions in Trader Losses as Institutions Buy the Dip

Ethereum (ETH) extended its decline this week, triggering widespread liquidations and leaving thousands of traders with heavy losses.

Despite the short-term turbulence, institutional investors appear undeterred, seizing the opportunity to accumulate the second-largest cryptocurrency.

Traders Face Heavy Liquidations as ETH Slides

Ethereum has slipped more than 7% since the start of the week, dropping below the crucial $4,200 level. At the time of writing, ETH trades at around $4,166, marking an 11% loss over the past seven days.

According to CoinGlass, over $486 million in positions were liquidated within the past 24 hours, with $196.8 million tied to Ethereum. Of that, $155.15 million came from long positions, underscoring how leveraged traders bore the brunt of the decline.

One high-profile case involved a trader who turned an initial $125,000 deposit into $29.6 million by carefully managing Ethereum longs. Earlier this week, he exited positions with $6.86 million in profit.

However, when he attempted to re-enter the market, he was liquidated, losing $6.22 million within just two days. Lookonchain reported that his four months of gains were nearly erased, leaving only $771,000 in equity.

Similarly, well-known leverage trader James Wynn saw his 25x ETH long partially liquidated, leaving him with 71.6 ETH valued at around $300,000. Another trader who deposited 1 million USDC into Hyperliquid to open maximum leverage positions across ETH, BTC, and Pump.fun (PUMP) is now facing unrealized losses exceeding $1 million.

Institutions Seize the Opportunity

While retail traders endured painful losses, institutional players have been quietly accumulating ETH.

Bitmine Immersion, the largest publicly traded ETH holder, recently purchased 52,475 ETH, boosting its total holdings to 1.57 million ETH worth nearly $6.6 billion. SharpLink also bought 143,593 ETH at $4,648 last week, now holding over 740,000 ETH. Together, these entities acquired more than 516,000 ETH in a single week, worth $2.22 billion.

Two institution-linked wallets also received 9,044 ETH, valued at about $38 million, from FalconX. This divergence between panic-selling by retail traders and aggressive institutional buying highlights a broader confidence in Ethereum’s long-term potential despite short-term volatility.

What Lies Ahead for Ethereum?

Ethereum’s dip coincides with Bitcoin slipping toward $113,000 after hitting a record high of $124,000 last week. Analysts point to inflation fears, profit-taking, and uncertainty ahead of Federal Reserve Chair Jerome Powell’s Jackson Hole speech as major factors behind the sell-off.

Technical charts suggest that if Ethereum fails to reclaim resistance at $4,232, the price could dip further toward $3,946 or even retest $3,300. However, a recovery above this level may see ETH push toward $4,488, with long-term projections still eyeing a potential run to $6,000–$8,000 by year-end.

For now, retail traders continue to grapple with liquidations, while institutions are turning the correction into an opportunity—signaling that Ethereum’s long-term narrative remains intact despite short-term pain.