Ethereum (ETH) recently hit a new all-time high of over $4,900 before undergoing an amendment. As of now, assets are trading at $4,520, reflecting an 8.9% pullback from the peak, but up 7.6% last week.
The move follows a strong upward momentum over the next few weeks that returned ETH to an invisible price level since the 2021 Bull Cycle. While Ethereum’s long-term trend continues to rise, analysts are considering short-term patterns to explain the current volatility of the market.
One such perspective comes from Xwin Research Japan, a contributor to Cryptoquant’s Quicktake platform, and highlights how the liquidation cycle is repeated, especially the ETH price action early every week.
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Ethereum’s “Monday Trap” and the risk of excessive leverage
Analysis shows that the markets utilized by Ethereum show a recurring rhythm associated with liquidation events. Taking advantage of long positions, betting that prices will continue to rise, often getting caught up in a sudden reversal, forcing liquidation that amplifies downward movement.
In April and June 2025, ETH saw a long liquidation of more than 300,000 ETH in a day, as a sharp decline caused the sale of Cascade. Xwin Research Japan pointed out an impressive weekly pattern. Monday consistently showed the highest liquidation volume, followed by Sunday and Friday.
In contrast, Saturday will likely record the lowest due to a decline in market activity. Often referred to as “Monday Trap,” this cycle suggests that traders carrying leveraged positions from the weekend are particularly vulnerable when institutional and retail streams reenter early in the week.
“It’s dangerous to bring weekend optimism to Monday’s massive sessions,” the analyst observed, emphasizing that short-term leverage will increase losses in a predictable way.
For long-term investors, this cycle is not about price direction, but about understanding the risks of excessive leverage in highly liquid markets.
Technology level and broader market outlook
From a technical standpoint, Ethereum price adjustments are being closely monitored. A market analyst known as Crypto Patel recently posted on X that ETH had been pulled back from $4,957 to $4,400.
According to Patel, keeping this level could pave the way for a higher price range of $6,000-8,000. However, if the support is damaged, a $3,500 or $3,200 minus side level is still possible.
🚨$ eth price analysis🚨
##Ethereum hit the $4,957 ATH two days ago, dating back to $4,400 now.
Strong support ranging from $3900 to $4000. Holding this zone will cost between $6,000 and $8,000.
A breakdown of $3,900 could lead to levels of $3,500 and $3,200. pic.twitter.com/wjtdheimqh– Crypto Patel (@cryptopatel) August 26, 2025
The interaction between utilized liquidation and key technical support levels may define the trajectory of Ethereum in the coming months. Historical data shows that large outflows from exchanges often precede sustained gatherings, while inflows indicate normal sales pressure.
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ETH’s recent Exchange Netflow data is leaning towards leaks, suggesting that investors are independent of the coin.
At the same time, institutional demand for Ethereum continues to be strengthened, strengthened by continuing debate on ensuring integration within regulated financial instruments such as ETFS.
Special images created with Dall-E, TradingView chart
