Ethereum (ETH) recently broke out at a new level of all time above $ 4,900 before undergoing a correction. Currently, the asset is negotiated at $ 4,520, reflecting a withdrawal of 8.9% compared to its peak, but still up 7.6% in last week.
This decision follows weeks of highly increasing dynamic which has made ETH at the price of invisible price since the bull cycle 2021. While the long -term trend of Ethereum remains upwards, analysts examine the short -term models to explain the current vasting of the market.
Such a perspective comes from Xwin Research Japan, a contributor to the Quicktake Cryptotics platform, stressing how recurring liquidation cycles shape the action of ETH prices, in particular towards the beginning of each week.
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“Monday Trap” by Ethereum and the risks of an excessive lever effect
According to the analysis, the leverages of Ethereum show a recurring rhythm linked to liquidation events. Long leveraging positions, Paris that the price will continue to increase, have often been taken in sudden reversals, forcing liquidations that amplify the movements downwards.
In April and June 2025, ETH saw long liquidations increase beyond 300,000 ETH in one day while net slowdowns triggered cascade sales. Xwin Research Japan noted a striking weekly model: Mondays constantly show the highest liquidation volumes, followed by Sundays and Fridays.
On the other hand, Saturdays record the lowest, probably due to the reduction in market activity. This cycle, often called “Monday trap”, suggests that traders carrying positions of weekends are particularly vulnerable once institutional and retail flows are reintegrated at the start of the week.
“Wearing the optimism of the weekend in the higher volume sessions on Monday is risky,” observed the analyst, stressing that the short-term lever effect amplifies the losses in a predictable manner.
For long -term investors, this cycle is less a question of price management and more to understand the risks of an excessive lever effect on a very liquid market.
Technical levels and wider market perspectives
From a technical point of view, the correction of Ethereum prices is closely monitored. A market analyst known as Crypto Patel recently poster On X, ETH went from $ 4,957 to $ 4,400, noting $ 3,900 to $ 4,000 as a solid support area.
According to Patel, maintenance of this level could open a path to higher price ranges from $ 6,000 to $ 8,000. However, if the support breaks, drop levels of $ 3,500 or even $ 3,200 remain possible.
🚨 $ ETh Price analysis 🚨
🔹 #Ethereum Hit ATH $ 4957 2 days ago, now back on $ 4,400.
🔹 Solid welder at $ 3,900 at $ 4,000. Holding this area opens at $ 6,000 at $ 8,000.
🔹 The $ 3,900 failure could lead to levels of $ 3,500 and $ 3,200. pic.twitter.com/wjtdheimqh– Crypto Patel (@Cryptopatel) August 26, 2025
The interaction between liquidations with leverage and the main levels of technical support can define Ethereum’s trajectory in the coming months. Historical data show that the major releases of exchanges often precede sustained rallies, while the inputs generally signal sales pressure.
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Netflow’s recent data for ETH have looked at outings, suggesting that investors withdraw coins in self-care, behavior often associated with long-term confidence rather than immediate sale.
At the same time, Ethereum’s institutional demand continues to strengthen itself, reinforced by current discussions on the implementation of integration into regulated financial products such as ETF.
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