Ethereum price is currently facing major selling pressure, correcting over 3%, and slipping all the way to $4,500 levels.
This comes amid strong profit booking for the altcoin and selloff across the broader crypto market.
Historically, September has been a weak month for Ethereum, with its price giving a median return of negative 12.47% since launch.
Although September opened on a strong note, technical charts and on-chain data indicate that historical risks continue to linger.
Today’s Ethereum price correction comes following the recent profit-booking activity as the percentage of total ETH supply in profit is declining.
Last week, on September 12, the metric reached 99.68%, its second-highest level in a month, before easing slightly to 98.14%, as per the Glassnode data.
Historically, such peaks have been followed by corrections. For example, when profit supply hit 99.88% on August 22 with ETH near $4,829, the price dropped about 9% to $4,380 within days.
The futures market data adds to the bearish outlook. The taker buy-sell ratio, which compares aggressive buyers to sellers, dropped to 0.91 on September 13, its second-lowest reading in a month.
Today’s 3% Ethereum price drop comes with a 29% jump in daily trading volume to $36.65 billion. The Coinglass data shows that the 24-hour liquidations for ETH have surged to $108 million, of which $93 million is in long liquidations.
On the other hand, ETH treasury firms like Bitmine Technologies (NYSE: BMNR) and SharpLink Gaming (NASDAQ: SBET) have continued with their ETH purchases. Institutional confidence in the largest altcoin remains strong.
As long as Ethereum holds above the $4,500 support, ETH downside risks remain limited. Analysts see $4,800-$4,880 as the key resistance zone for its next upward move.
Crypto analyst Nami said that if ETH manages a daily close above $4,880, it could trigger a meaningful breakout. This could potentially fuel fresh momentum and a short squeeze ahead. Historically, that level has acted as strong resistance, capping previous rallies.
Nami highlighted the $4,200-$4,400 range as a solid support base. He noted that the ETH support continues to absorb dips and protect against deeper declines. As long as this support holds, the bullish outlook for Ethereum remains intact.
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