Why did the price of ETH fall?

Ethereum (ETH) dropped 3.88% in the last 24 hours, falling more than the overall crypto market, which declined by 2.03%. This decline is due to a combination of technical issues, large withdrawals from Ethereum ETFs, and forced selling caused by increased borrowing (leverage).

1. Leverage unwinding – $210 million worth of ETH long positions were liquidated, pushing prices down further.
2. ETF outflows – BlackRock’s Ethereum ETF experienced a $375 million withdrawal on August 4, the largest since it launched.
3. Technical breakdown – ETH fell below a key support level at $4,465, triggering automatic sell orders.

Deep Dive

1. Leverage Liquidation Spiral (Negative Impact)

What happened: In the past 24 hours, $210 million in ETH long positions were forcibly closed (liquidated), according to data from the CoinMarketCap community. At the same time, the total amount of open leveraged ETH contracts increased by nearly 20% to over $1 trillion, showing that many traders were betting heavily on ETH rising before the drop.

Why it matters: Too many traders were betting on ETH going up, creating a fragile situation. When ETH price fell below $4,465, margin calls forced these traders to sell their positions quickly, causing a chain reaction of selling. The 24-hour funding rate for ETH futures dropped by about 26% over the week, indicating traders are less willing to hold leveraged long positions.

What to watch: ETH’s ability to stay above $4,221, which was a low point in September. If it falls below this, another $1.19 billion in long positions could be liquidated, pushing prices down further.

2. ETF Outflows Show Institutional Caution (Negative Impact)

What happened: U.S. spot Ethereum ETFs saw $446.8 million in withdrawals on September 6, according to crypto analyst Zynweb3 on X (formerly Twitter). BlackRock’s ETHA ETF alone had a $375 million outflow on August 4, its biggest single-day withdrawal since launch.

Why it matters: Large investors are reducing their exposure to Ethereum amid regulatory uncertainty, especially around new rules being considered under the GENIUS Act. Competition from other altcoin ETFs, like Grayscale’s new multi-asset ETF (GDLC) which holds 20% ETH, is also drawing some investment away. GDLC has returned 40% year-to-date, compared to ETH’s 17.56% gain over the last 60 days.

What to watch: A Senate vote on the Responsible Financial Innovation Act scheduled by September 30 could provide regulatory clarity and help stabilize ETF flows.

3. Technical Breakdown (Mixed Impact)

What happened: Ethereum’s price fell below its 30-day simple moving average (SMA) of about $4,466 and the Fibonacci retracement level at $4,781. The MACD indicator, which measures momentum, turned negative, signaling bearish pressure.

Why it matters: This breaks the positive price trend that started in July. However, the longer-term 200-day SMA at $2,881 remains intact, suggesting the overall uptrend is still in place. The Relative Strength Index (RSI) at 50.65 shows ETH isn’t oversold yet, meaning there could be more room for prices to fall.

What to watch: A daily close above $4,587 (the 50% Fibonacci level) would help reduce bearish pressure and could signal a potential rebound.

Conclusion

Ethereum’s recent price drop is driven by a combination of forced selling from leveraged traders, institutional investors pulling money out of ETH ETFs, and technical factors signaling weakness. While long-term factors like staking (with 28.3% of ETH supply locked up) help reduce panic selling, short-term risks remain tilted toward lower prices.

Key point to watch: Whether ETH ETFs can reverse the $800 million outflow trend seen in September, especially with the upcoming Fusaka upgrade testnet launching on October 1.

What could affect the price of ETH?

Ethereum is at a crucial point with upcoming upgrades and changing investment trends.

1. Fusaka Upgrade (Positive) – December’s scaling improvements could make the network more efficient and useful.
2. Staking Centralization Risk (Negative) – Reduced rewards might pressure individual stakers, benefiting larger staking services.
3. ETF Growth (Positive) – New Ethereum staking ETFs, like VanEck’s, may increase interest from big investors.

In-Depth Look

1. Protocol Upgrades: Fusaka’s Scaling Potential (Positive Impact)

What’s Happening: On December 3, 2025, Ethereum will launch the Fusaka upgrade, which includes a feature called PeerDAS. This will improve how data is handled and double the network’s capacity for certain data types. The goal is to lower costs for Layer 2 solutions (which help scale Ethereum) and boost transaction speeds to over 12,000 per second by 2026 (CryptoGucci).

Why It Matters: Better scalability means more decentralized apps (dApps) and users can join the network, increasing demand for ETH to pay transaction fees and for staking. Past upgrades like Dencun in March 2024 led to ETH price increases of over 40%.

2. Staking Economics: Challenges for Solo Stakers (Mixed Impact)

What’s Happening: Research from Ethereum Foundation collaborators suggests that lower ETH issuance (new ETH created as rewards) could hurt solo stakers more than large staking pools. Currently, solo validators earn about 0.6% returns, while liquid staking pools offer around 1.8%.

Why It Matters: If solo stakers leave, staking could become more centralized, which is a risk for the network’s security and decentralization. However, lower ETH issuance (now about 0.3% annually) means less new ETH flooding the market, which could support prices. The staking yield floor, roughly 3.5%, helps keep ETH’s price stable.

3. Regulatory and Institutional Support (Positive Impact)

What’s Happening: The U.S. Securities and Exchange Commission (SEC) has approved new Ethereum staking ETFs, like the one from VanEck. Additionally, clearer rules around stablecoins from the GENIUS Act are helping define the regulatory landscape. Assets under management (AUM) for ETH ETFs have grown to $24.71 billion, with daily inflows averaging $360 million in September (MEXC).

Why It Matters: These developments could speed up institutional investment in Ethereum, especially if staking rewards (currently about 4.1% annual percentage yield) are included in ETFs. However, fees and tax rules might limit interest from everyday investors.

Conclusion

Ethereum’s future price depends on how well it balances technical upgrades like Fusaka, staking incentives, and regulatory progress. While improvements and ETFs could push ETH toward $5,000, risks remain from staking centralization and overall market sentiment (crypto market cap down 1.77% in 24 hours). Keep an eye on the December 3 upgrade and upcoming ETF approvals to see if institutions view ETH as “digital oil” or demand higher returns.

What are people saying about ETH?

The Ethereum community is balancing excitement over big investors’ moves with caution about technical hurdles. Here’s what’s trending:

1. Whales staked $500 million worth of ETH in one week – showing strong confidence but raising concerns about limited supply
2. Warnings of a “bearish divergence” at all-time highs (ATH) – analysts caution about possible price corrections
3. ETF inflows reach $1 billion per day – institutions are betting on Ethereum’s role as “digital oil”

Deep Dive

1. @Cipher2X: Whale stakes $661 million ETH (bullish)

“A whale just staked 150,000 $ETH worth around $661 million… reducing liquid circulation.”
– @Cipher2X (18.2K followers · 2.1M impressions · Sept 5, 2025, 12:05 PM UTC)
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What this means: This is a positive sign for Ethereum because staking locks up coins, reducing the amount available to sell. It also shows long-term confidence. Since about 30% of all ETH is already staked, this move supports the idea of ETH as “ultrasound money” — a term meaning it’s becoming a very stable and valuable asset.

2. @mkbijaksana: ATH rejection risks (bearish)

“If ETH fails to break out from the ATH, we can expect correction to at least $4,100… RSI divergence.”
– @mkbijaksana (89.4K followers · 4.7M impressions · Aug 24, 2025, 4:44 PM UTC)
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What this means: This is a short-term warning. If Ethereum can’t push past its all-time high price of $4,868, it might drop to around $4,100. The “RSI divergence” is a technical term indicating weakening momentum, which often signals that some investors are taking profits and selling.

3. @johnmorganFL: ETF demand surges (bullish)

“Ethereum ETFs saw $461 million inflows on Aug 8… highest since July.”
– @johnmorganFL (312K followers · 28M impressions · Aug 9, 2025, 2:13 PM UTC)
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What this means: This is a strong positive sign because institutional investors are buying Ethereum through ETFs (Exchange-Traded Funds). These funds now hold $18.4 billion in ETH, which creates steady buying pressure. Since Ethereum’s market size is smaller than Bitcoin’s, these inflows can have a bigger impact on its price.

Conclusion

The outlook for Ethereum is mixed. Technical traders are watching for a possible pullback after recent price highs, while bigger investors focus on steady accumulation through staking and ETFs. Keep an eye on the ETH/BTC ratio: if it rises above 0.06 (currently 0.037), it could signal the start of a strong period for alternative cryptocurrencies (“altseason”). With the Pectra upgrade now live and more whale wallets growing, the $4,000 to $5,000 price range will be key in determining Ethereum’s next big move.

What is the latest news about ETH?

Ethereum is adapting to regulatory changes while improving its technology. Here’s the latest:

1. Fusaka Upgrade Confirmed (September 20, 2025) – A major update focused on scalability is scheduled for December 3.
2. Grayscale Launches Multi-Asset ETF (September 20, 2025) – Ethereum (ETH) is a key part of a new crypto investment fund.
3. SEC Updates ETP Rules (September 19, 2025) – Easier approval processes could lead to more ETH-related investment products.

Deep Dive

1. Fusaka Upgrade Confirmed (September 20, 2025)

What’s happening: Ethereum developers have finalized the Fusaka upgrade, set to go live on December 3. This update introduces a new technology called PeerDAS (Peer Data Availability Sampling) to improve how Ethereum handles transactions on Layer-2 solutions, which are systems built on top of Ethereum to make it faster and cheaper. The upgrade will also double the capacity for storing data blobs, helping the network handle more information. Test versions of the upgrade will run in October to catch any issues.
Why it matters: This upgrade could make Ethereum more useful by lowering transaction costs and encouraging more developers to build apps on it. However, there’s a short-term risk if testing finds problems that delay the launch. (MEXC News)

2. Grayscale’s Diversified ETF Launch (September 20, 2025)

What’s happening: Grayscale introduced the CoinDesk Crypto 5 ETF (GDLC), which includes 20% Ethereum along with Bitcoin (BTC), XRP, Solana (SOL), and Cardano (ADA). This fund has gained 40% this year, outperforming Bitcoin by 11% since June, thanks to its mix of cryptocurrencies.
Why it matters: This shows growing interest from big investors in Ethereum, but because the fund includes other coins, the impact on Ethereum’s price might be less direct. Also, with over 90 similar investment products waiting for approval, competition is heating up. (Bitget)

3. SEC’s Generic ETP Standards (September 19, 2025)

What’s happening: The U.S. Securities and Exchange Commission (SEC) has approved new rules that allow exchanges to list crypto exchange-traded products (ETPs) without reviewing each one individually, as long as the crypto asset has at least six months of futures trading history. Ethereum qualifies under these rules. This could lead to over 90 new altcoin ETPs launching within a year.
Why it matters: This change makes it easier for new Ethereum-related investment products to enter the market, potentially attracting more investors. However, Ethereum’s dominance might face challenges from funds focused on other coins like Solana and XRP. (CoinMarketCap)

Conclusion

Ethereum’s upcoming Fusaka upgrade and its growing presence in ETFs show its focus on both improving technology and attracting institutional investors. As regulatory clarity improves, keep an eye on the December upgrade and how Ethereum competes with other cryptocurrencies in new investment products. Will the efficiency gains from Layer-2 solutions help Ethereum maintain its lead?

What is expected in the development of ETH?

Ethereum’s development is moving forward with key updates:

1. Fusaka Upgrade (Dec 2025) – Backend improvements to boost scalability and reduce transaction costs.
2. Account Abstraction (2026) – Built-in support for smart contract wallets, making accounts more flexible.
3. Stateless Clients (2026+) – Lightweight nodes that need much less storage, making it easier to run Ethereum.
4. Quantum Resistance (Long-term) – Adding security measures to protect against future quantum computers.

In-Depth Look

1. Fusaka Upgrade (December 2025)

What it is: Fusaka is a major update that introduces PeerDAS (Peer Data Availability Sampling) through EIP-7594. This technology will increase the amount of data Ethereum can handle by 3 to 5 times, helping Layer 2 solutions like Arbitrum and Base run more efficiently. Test networks (Holešky, Sepolia) will test these changes starting October 2025, with the main Ethereum network upgrade planned for December 3, 2025. After the upgrade, the number of data blobs per block will gradually increase from 6 to 14.
Why it matters: This is good news for Ethereum because better data availability lowers costs for Layer 2 networks, which handle most transactions today. It supports Ethereum’s strategy of focusing on rollups (Layer 2 scaling solutions). However, there could be delays if testing takes longer than expected.

2. Account Abstraction (2026)

What it is: Account Abstraction, through proposals like ERC-4337, will allow smart contract wallets to be supported natively on Ethereum. This means users won’t have to rely on traditional externally owned accounts (EOAs). Features like social recovery (getting your wallet back if you lose access) and gas fee sponsorship (someone else pays your transaction fees) become possible.
Why it matters: This change makes Ethereum easier to use, especially for newcomers. It’s seen as a positive step but depends on many apps adopting the new system. Vitalik Buterin, Ethereum’s co-founder, has highlighted this as key for making Ethereum mainstream (source).

3. Stateless Clients (2026+)

What it is: Stateless clients are a new way for Ethereum nodes to verify transactions without storing the entire history of the blockchain. This reduces the hardware needed to run a node by about 99%. This update is part of Ethereum’s “The Purge” phase.
Why it matters: This is great for decentralization because it lowers the barrier to running a node, allowing more people to participate in securing the network. The success of this depends on implementing a technology called Verkle trees.

4. Quantum Resistance (Long-term)

What it is: Ethereum is researching ways to protect itself from future quantum computers, which could break current cryptographic security. This involves post-quantum cryptography methods like lattice-based schemes. While there’s no set timeline, prototypes are expected around 2027–2028.
Why it matters: If this is delayed, Ethereum could be vulnerable to quantum attacks after 2030, which would be a serious risk. Successfully adding quantum resistance would help protect Ethereum’s $541 billion market value for the long term.

Conclusion

Ethereum’s roadmap balances short-term improvements like the Fusaka upgrade with long-term goals such as stateless clients and quantum security. The Fusaka upgrade and account abstraction are key milestones for 2025–2026, while future efforts focus on making Ethereum more sustainable and secure. Since Layer 2 solutions already handle about 80% of Ethereum-related transactions, these base-layer upgrades will play a crucial role in shaping Ethereum’s growth and usability going forward.

What updates are there in the ETH code base?

Ethereum's software is getting important updates to make it faster and more secure.

1. Fusaka Upgrade (December 2025) – Increases data capacity by 10 times using PeerDAS, making Layer 2 transactions much cheaper.
2. Geth v1.16.0 (June 30, 2025) – Raises the gas limit to 45 million, allowing more transactions per block.
3. Legacy Blob Conversion (September 20, 2025) – Keeps old transaction formats working smoothly after the Osaka upgrade.

Deep Dive

1. Fusaka Upgrade (December 2025)

Overview:
The Fusaka upgrade introduces PeerDAS (EIP-7594), which significantly improves Ethereum’s ability to handle data by increasing the number of data blobs per block from 6 to 48. This means Layer 2 solutions, which help scale Ethereum, could process around 12,000 transactions per second by 2026.

What this means:
This is great news for Ethereum users because it will lower transaction fees for popular applications like decentralized finance (DeFi) and NFTs. For users on Layer 2 platforms like Arbitrum or Base, fees could drop by about 80%.

(Source)

2. Geth v1.16.0 (June 30, 2025)

Overview:
Geth, the most widely used Ethereum client, will increase the gas limit from 30 million to 45 million. Gas limits control how many transactions can fit into a block, so this change allows about 50% more transactions per block. Validators using Nethermind 1.32.0 will also adopt this update.

What this means:
In the short term, this won’t have a big impact because blocks will fill up gradually. But in the long run, it’s positive because developers can create more complex decentralized apps (dApps) without worrying about network congestion.

(Source)

3. Legacy Blob Conversion (September 20, 2025)

Overview:
After the Osaka upgrade, Geth added a feature that automatically converts old-format blob transactions into the new format within a 2-hour window. This helps avoid transaction failures during the upgrade.

What this means:
This update doesn’t affect Ethereum’s performance but is important for user experience. It helps exchanges and wallets avoid problems during the transition.

(Source)

Conclusion

Ethereum is focused on scaling up with the Fusaka upgrade’s data improvements and making its software more efficient with gas limit increases. With these changes, Ethereum aims to keep its lead over competitors like Solana, known for speed, and Bitcoin, favored by institutions.