Ethereum below $ 4,000: Liquidations and new staking ETF shakes market!

Ethereum below $ 4,000: Liquidations and new staking ETF shakes market!

Ethereum (ETH) recently undercut the decisive $ 4,000 mark, which led to over $ 400 million of liquidations in long positions in ETH futures. This is the second time within five days that such negative developments lasted. The market is currently showing a pessimistic mood, which is additionally reinforced by negative ETH finding rates that were found on Wednesday.

In the middle of this turbulent week, Rex Shares introduced the first Ethereum-Staking ETF in the United States in collaboration with Osprey Funds. The Rex-Osprey ETH + Staking ETF (ESK) is designed to pursue Ethereum's spot price and offer monthly staking rewards. All stacking rewards are forwarded directly to the investors without Rex or Osprey keeping a share. According to [fxstreet] (https://www.fxstreet.com/cryptocurrencies/ethhereum-price-forecast-eth-dips-below-4-000-savy-liquidations-as-rex-osprey-debuts-staking- 202509252021) Investment Company Act from 1940 registered, which guarantees regulation similar to that of investment funds.

Market analysis and liquidations

The liquidations of Ethereum Futures have reached an unprecedented increase to $ 431.5 million in the last 24 hours, with $ 401.8 million being due to liquidated long positions alone. ETH has fallen to the lowest level since August 8 on Thursday and is now looking for support for his 100-day average (SMA). This average offered support in the past during a decline on June 22.

A possible decline under the 100-day SMA could then push Ethereum for the support at $ 3,500. Technical indicators such as the relative strength index (RSI) and the Stochastic Oscillator (Stoch) show that the market remains in oversold areas, which indicates a prevailing bear atmosphere, but also draws attention to potential recovery potential.

Market developments and ETF news

In addition to the introduction of the new Ethereum-Staking ETFS, Rex Shares recently launched the first Solana-Staking ETF in July and the first Dogecoin and XRP ETFs last week. Nevertheless, the US Securities and Exchange Commission (SEC) has still not become known for a quick decision on applications from companies such as Blackrock, Franklin Templeton and Fidelity to approved staking for their Ethereum ETFs. These delays could affect market stability and influence the interest in Ethereum ETFs, which have reached a total assets of around $ 27 billion since it was introduced in July 2024.

It remains to be seen how the situation will develop in the coming days, especially in view of the current bear's market mood and the latest liquidations. Investment strategies around Ethereum and other cryptocurrencies should be chosen carefully because the situation can change at any time.