Ethereum Comes Under Bearish Pressure as $145M ETH Longs Liquidated in a Day

Ethereum faced intense selling pressure this week as leveraged traders were caught off guard by a sharp price drop. This sharp downturn reflects a triple hit to Ethereum’s short-term outlook: mass liquidations fueling a feedback loop of forced selling, capital rotation from ETH to Bitcoin in ETF flows, and a bearish technical breakdown pointing to further downside risks.  

Record Liquidations Spark Panic Selling

On August 28, Ethereum traders faced a heavy wave of liquidations, with over $145 million in ETH long positions wiped out in just one day, according to CoinGlass. The sudden drop below the $4,488 price threshold set off a chain reaction of automatic margin calls, forcing leveraged traders to exit at steep losses.

Source: Coinglass 

The next key risk area sits at $4,200, where nearly $928 million in short positions would face liquidation if prices rebound. This makes $4,200 a crucial pivot zone for both bulls and bears in the days ahead.

ETF Flows: Signs of Rotation from ETH to BTC

Beyond liquidations, ETF flows suggest a shifting tide between major digital assets. Ethereum ETFs recorded $196.6 million in outflows on August 18, while Bitcoin ETFs drew $219 million in fresh inflows on August 28.

This divergence may point to investors rotating from ETH to BTC amid macroeconomic uncertainty, including the dismissal of a U.S. Federal Reserve Governor and a volatile GDP data release. While near-term flows appear bearish for Ethereum, it’s worth noting that ETH ETFs still hold $24.15 billion in AUM. This level of institutional commitment indicates confidence in Ethereum’s long-term role within the digital asset ecosystem, even as tactical positioning favors Bitcoin.

Technical Breakdown Reinforces Bearish Bias

Ethereum’s chart structure adds weight to the bearish outlook. The asset broke below the 23.6% Fibonacci retracement level ($4,577) and slipped under its 100-hour simple moving average (SMA)—both common indicators that traders view as critical support zones.

The MACD histogram flipped negative (-30.8), confirming momentum has tilted toward sellers. Unless buyers reassert control, the next meaningful support sits at $4,020 (38.2% Fib retracement), which could provide a stabilizing floor if tested.

Short-Term Caution, Long-Term Resilience

Ethereum’s recent downturn reflects a confluence of forced deleveraging, capital rotation into Bitcoin, and technical breakdowns. While long-term fundamentals—such as institutional holdings of 3.4 million ETH across 17 firms—remain supportive, short-term sentiment favors caution.

The immediate focus lies on whether ETH can hold the $4,200 support zone. If sustained, it could trap over-leveraged shorts and trigger a rebound. Another variable to watch is whether Bitcoin ETF inflows spill over into ETH products, potentially lifting Ethereum alongside broader market flows.

In crypto, narratives and perception often shape momentum just as strongly as technicals and flows. This is where communications strategy becomes critical—and where agencies like Outset PR play a pivotal role.

Outset PR Shapes Narratives with Data

Founded by renowned crypto PR expert Mike Ermolaev, Outset PR operates less like a traditional agency and more like a hands-on workshop. Every campaign is built with market fit in mind, not random placements or cookie-cutter packages. Instead, the agency integrates a client’s story into the current market context, ensuring communications feel timely, authentic, and organically aligned with industry sentiment.

The process is powered by media analytics and trend monitoring. Outset PR selects media outlets based on measurable metrics—discoverability, domain authority, conversion potential, and viral reach—rather than just name recognition. Each pitch is tailored to the voice of the platform and its audience, while timing is mapped to let the story unfold naturally, building trust instead of chasing hype.

Why PR Matters in Bearish Cycles

When markets turn bearish, attention and trust become scarce commodities. Traders may pull back, but projects that communicate with clarity, data-backed credibility, and editorial discipline can still capture visibility and strengthen positioning. Outset PR’s fusion of analytics with high-touch strategy ensures campaigns are not only creative but also measurable in impact.

For crypto, blockchain, and AI projects, this means two things:

1. Market dominance is achievable quickly—Outset PR campaigns have secured recognition in target geographies within just a month.

2. Traffic and trust scale together—its proprietary placement system consistently generates visibility far beyond standard Google search reach, turning branded content into traffic drivers.

As Ethereum traders now watch the $4,200 support, projects navigating this environment must also watch their communications support. Outset PR demonstrates that in volatile cycles, verifiable, data-driven storytelling can be equally important. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.