Ethereum price surged to $4,960 before reversing sharply, losing about $180 in under 30 minutes; this rapid correction erased most intraday gains and increased market volatility, leaving traders facing short-term downside risk while longer-term bullish structure remains intact.
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ETH hit $4,960 then dropped ~$180 within 30 minutes.
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Rapid reversal produced large bearish candles and forced quick liquidations.
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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
| Metric | Value | Notes |
|---|---|---|
| Session high | $4,960 | Intraday peak before reversal |
| Session low (post-crash) | $4,630.92 | Price at press time |
| Intraday swing | ~$330 | High-to-low during the session |
| 7‑day change | +8.49% | Still positive despite the crash |
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
