Ethereum May See Ongoing Volatility After Rally to $4,960 and Swift $180 Reversal

• ETH hit $4,960 then dropped ~$180 within 30 minutes.

• Rapid reversal produced large bearish candles and forced quick liquidations.

• Intraday volatility rose; ETH trades lower intra‑day but retains a bullish multi‑month breakout.

Ethereum price surged to $4,960 then plunged $180 in minutes; COINOTAG explains what happened and what traders should watch next — read the actionable summary now.

What caused the Ethereum price spike and sudden crash?

Ethereum price rallied above $4,900 on concentrated buy pressure but then collapsed after profit-taking and rapid liquidation pressure produced large bearish candles. Short‑term exhaustion near $4,960 and aggressive sell orders erased most gains inside 30 minutes, driving intraday volatility higher.

How did liquidations and profit-taking trigger the ETH reversal?

The reversal coincided with concentrated long positions and stop-loss clusters above $4,900–$4,960. Rapid profit‑taking generated cascading sell orders. Exchange order-book snapshots and large candle sizes indicate significant forced liquidations compressed into three large bearish candles, accelerating the decline from the session high.

Ethereum surged to $4,960 before a brutal $180 drop erased most gains. Traders now face uncertainty as sentiment swings in volatile conditions.

• ETH broke above $4,900 in a strong rally but reversed sharply within 30 minutes.
• A steep drop followed after bullish momentum showed signs of exhaustion near $4,960.
• Market volatility surged with no support levels holding during the rapid correction.

Ethereum’s intraday rally took a dramatic turn as prices climbed to $4,960 before plunging roughly $180 in under 30 minutes, triggering a wave of fast selling across perpetual and spot venues.

Why did ETH spike above $4,900 before the reversal?

Momentum accelerated after early consolidation near $4,720. By 14:30 local time buyers stepped in, producing a sequence of higher highs and higher lows. Spot and perpetual contract flows intensified around 16:30–18:00, pushing price past $4,900 and briefly toward $4,960 before exhaustion set in.

Momentum peaked around 18:00 with bullish candles dominating. Traders entered long positions seeking continuation, but by 19:30 a long bearish candle triggered rapid deleveraging. Multiple bearish candles then extended the drop, taking price below $4,800 in quick succession.

At press time, Ethereum (ETH) is trading at $4,630.92, down 2.90% over 24 hours but still up 8.49% across the past seven days.

When did volatility spike and how severe was the intraday correction?

Volatility intensified during the swift reversal window. The session high-to-low swing exceeded $180 and unfolded over three large bearish candles, signaling concentrated selling pressure and liquidity gaps. Intraday indicators showed sharp increases in average true range and exchange-side liquidations.

ETH Spikes Above $4,900 Before Brutal Reversal

On 24th of August Ethereum’s 10-minute chart from Binance’s perpetual contract showed early consolidation before a slight morning dip near $4,720. By 14:30, the market turned bullish, posting steady higher highs and lows.

Momentum picked up sharply at 16:30, pushing ETH past $4,900 by 18:00. Traders piled in as bullish candles dominated, briefly sending the price near $4,960. Sentiment hit a high as traders declared, “We’re so back.”

But the excitement quickly faded. A sharp reversal struck just after 19:30. A long bearish candle dragged ETH down by nearly $100 in minutes. Multiple black candles followed, crashing the price below $4,800. By 20:00, Ethereum traded at $4,779, wiping out most of the rally.

What does the broader technical outlook say about ETH’s medium-term bias?

Despite the intraday sell-off, the medium-term technical structure remains constructive. ETH has broken a multi‑year symmetrical triangle on monthly charts, suggesting the breakout may be valid. Pattern-based projections point to higher targets in the $6,000–$8,000 range, assuming the breakout sustains on higher timeframe confirmations.

This wider trend suggests the intraday collapse may be a brief shakeout within a larger bullish move. Traders should watch for sustained weekly closes above the breakout zone as confirmation.

Comparison: Session high, low and performance

Frequently Asked Questions

Did liquidations cause the ETH crash?

Yes. Liquidations and clustered stop-loss orders above $4,900 amplified selling. Large bearish candles and order-book imbalances indicate forced exits contributed materially to the rapid decline.

Is the longer-term ETH breakout still valid?

Technically, the monthly breakout above a multi-year symmetrical triangle remains intact, but confirmation requires sustained higher timeframe closes and renewed buying volume to validate continuation toward $6,000–$8,000.

Key Takeaways

• Immediate risk: Intraday reversal erased gains and increased short‑term downside risk.
• Market drivers: Profit‑taking and forced liquidations drove the sharp drop.
• Macro view: Multi‑month breakout suggests bullish medium‑term bias if higher timeframe confirmation follows.

Conclusion

Ethereum price action showed extreme intraday volatility: a rapid rally to $4,960 followed by a $180 plunge that erased most gains. Short‑term risk is elevated, but the larger breakout pattern supports a cautiously bullish view. Monitor liquidation clusters, volume, and weekly closes for confirmation. — COINOTAG