Ethereum’s slip below $4,300
Ethereum’s slip below $4,300 set off a chain reaction across crypto markets Monday morning, wiping out more than $487 million in long positions and leaving altcoins bleeding.
Hyperliquid (HYPE) plummeted 8.7% to $43.38 while Sui (SUI) crashed 7.3% to $3.55, leading a brutal selloff across altcoins. Ethereum (ETH) shed 5.4%, Solana (SOL) tumbled 5.6%, and Cardano (ADA) declined 6.2%, according to CoinGecko data. XRP (XRP) fell 4.5%, Stellar (XLM) dropped 5.4%, and Dogecoin (DOGE) retreated 4.6% in the last 24 hours.
“This looks like a fairly natural pullback after the strong run many cryptocurrencies had seen in recent weeks, with liquidations amplifying the downside across the market,” Nansen analyst Nicolai Sondergaard told Decrypt. “Since altcoins tend to react more sharply during these periods, tokens like HYPE and SUI experienced even steeper declines,” Sondergaard noted, pointing out that Bitcoin’s sell-off triggered the declines.
Traders brace for Jackson Hole meeting
The liquidation cascade comes ahead of Thursday’s Jackson Hole symposium, with QCP Capital analysts sharing in their latest report how “some traders believe that the overnight washout reflects de-risking ahead of the symposium,” where Fed Chair Jerome Powell takes the stage. Held each August in Jackson Hole, Wyoming, the symposium gathers the Fed, global central bankers, and policymakers.
QCP analysts added that “BTC funding rates had been warning of trouble” with rates turning negative by Saturday despite spot prices rising over the weekend. “The U.S. PPI came in higher than expected, forcing markets to quickly scale back September rate-cut bets that earlier signs of labor market softness had elevated,” Dan Chen, analyst at crypto exchange Bitunix, told Decrypt.
Chen called the selloff “a corrective pullback within an uptrend” and said the market may consolidate through Jackson Hole if Ethereum “can hold support near $4,150” before resuming its advance. However, he warned that “a breakdown risks further cascading liquidations with downside targets in the $3.9k–$3.6k range, where altcoins—especially HYPE and SUI—are likely to stay relatively weaker.”
Some 75% of Ethereum’s $206.79 million in liquidations in the last 24 hours came from long positions, totaling more than $180.52 million, according to CoinGlass data. “The mounting queue of soon-to-be-unstaked ETH could be driving the asset’s recent retracement,” Juan Leon, Bitwise Senior Investment Strategist, previously told Decrypt.