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- ETH fell from $4,500 to $4,180 amid heavy derivatives selling.
- Technical indicators (RSI, Bollinger Bands) suggest oversold conditions.
- Support at $4,100 could trigger a short-term relief rally.
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Ethereum (ETH) plunged sharply on September 22, dropping from just below $4,500 to intraday lows near $4,100. At press time, ETH trades around $4,180, marking a 6% decline in 24 hours. The sudden dip is tied to falling derivatives activity and increased selling pressure among traders.
Derivatives Activity Signals Market Caution
Open Interest (OI) across major exchanges fell to $9.84 billion, approaching levels last seen on September 6. Net Taker Volume hit -$1.66 billion, reflecting heavy sell-side dominance. Funding rates also turned negative, meaning short sellers are paying longs to maintain positions. Historically, such deeply negative funding near key supports often precedes relief rallies, signaling that ETH could be entering an oversold environment.
A notable whale wallet contributed to the sell-off, offloading 1,000 ETH—roughly $4.19 million—despite a history of poorly timed exits that previously led to rallies.
The "buy high, sell low" whale 0x3c9E panic-sold 1,000 $ETH($4.19M) again an hour ago.
— Lookonchain (@lookonchain) September 22, 2025
Over the past two months, this whale has always bought $ETH at high prices and sold at lows.https://t.co/gsGi4daxvz pic.twitter.com/5skd6uwIKP
Technical Indicators Hint at Short-Term Bottom
Ethereum’s daily chart shows ETH breaking below the mid-Bollinger Band near $4,440 and touching the lower band around $4,160. The Relative Strength Index (RSI) is nearing 30, a common oversold threshold. Key support sits at $4,100, with a potential downside target of $3,700–$3,800 if this level fails. Meanwhile, the MACD histogram indicates that bearish momentum may be slowing, hinting at a possible relief rally if $4,100 holds. Immediate resistance lies near the 20-day moving average at $4,440.
Also Read: From $4,500 to $60K? Tom Lee’s Bold Ethereum Prediction
Ethereum Projects Continue to Shine
Amid the market turbulence, Ethereum-based projects are making headlines. PepeNode (PEPENODE), for instance, has raised $1.3 million in its presale while offering 965% staking rewards. This gamified crypto mining platform allows users to build virtual mining empires, purchase nodes, and upgrade facilities, all while employing a deflationary token model that burns 70% of tokens used for upgrades.
While Ethereum faces short-term sell-off pressure, technical indicators suggest a potential oversold bounce near $4,100. Investors should watch key support levels closely, as holding these levels may trigger a short-term relief rally, offering an entry point for traders and crypto enthusiasts alike.
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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
