Ethereum (ETH) Flips Bitcoin as Combined Market Liquidation Top $665M

Ethereum (ETH) took the lead in global crypto liquidations as the market faced more than $665 million in losses on 23 August.

Ethereum accounted for $285 million, surpassing Bitcoin’s $70.5 million in what showing its over-leveraged exposures.

While large transfers and strong ETF inflows added to the changing market dynamics, some trader capitulation is also seen.

Ethereum (ETH) Leads the Liquidation Wave

CoinGlass data shows that Ethereum (ETH) recorded the highest liquidations in the past 24 hours, with $285 million cleared from futures traders.

Bitcoin followed with $70.5 million, while Solana saw $31.7 million. Other tokens combined account for $33.7 million, bringing the total market liquidation to $665 million.

Data showed Ethereum (ETH) was at the center of this move. The shift came as Ethereum touched a new all-time high near $4,820.

Market analyst Ted Pillows pointed out that key liquidity clusters had formed around $4,650 and $4,820.

He suggested that Ethereum might retest the lower cluster before another push upward.

At press time, the Ethereum price traded at $4,720. The price stayed above last week’s low of $4,500, showing relative strength.

Analysts noted that $4,650 remained the key support level. A drop below that mark could point to weaker sentiment, while holding above it might allow buyers to regain momentum.

Meanwhile, on-chain activity added to market pressure. Data shared by Lookonchain revealed that wallets linked to Matrixport shifted 95,873 ETH, valued at $452 million, to Binance and OKX.

In addition, the firm withdrew more than 2,300 Bitcoin, worth about $272 million, from exchanges.

Observers viewed this trend of funds moving between the two largest assets during a period of caution as a sign a major shift might be ahead.

ETF Inflows Show Investor Interest in Ethereum

The rise of Ethereum was also supported by inflows into spot exchange-traded funds.

Nate Geraci reported that Ethereum ETFs attracted $340 million in a single day. In August alone, Ethereum ETFs brought in $2.8 billion, while Bitcoin ETFs recorded $1.2 billion in outflows.

Since the beginning of July, Ethereum ETFs have gathered $8.2 billion in inflows compared to $4.8 billion for Bitcoin.

The difference pointed to a shift in investor interest. Market watchers linked this to expectations of upcoming network upgrades.

Some consider this as other factors, such as recent highs and optimism around Ethereum’s role in the digital asset sector.

The growth in ETF demand gave Ethereum (ETH) an edge in a week marked by heavy liquidations.

While Bitcoin remained the largest digital asset by market cap, Ethereum appeared to be drawing stronger capital flows in the short term.

Analysts Eye Possible Market Peak Ahead

Market cycle trends is also drawing attention. Analyst Ali Martinez pointed out that past Bitcoin cycles suggested the market could reach a peak within two months.

He said that if history repeated itself, traders should expect stronger price swings during that time.

These views arrived during a period of shifting market behavior. Ethereum showed resilience despite large-scale liquidations and whale transfers.

The coin’s support levels held, ETF demand became sustained, and investor flows favored Ethereum over Bitcoin.

The liquidation heatmap highlighted this shift clearly, placing Ethereum at the top, followed by Bitcoin, Solana, and other assets.

With a combined $665 million liquidated, traders faced a reminder of the volatility that still defined the digital asset market.

Notably, as capital continued to move, both Bitcoin and Ethereum remained central to the discussion.

The next steps for Ethereum (ETH) could depend on whether it holds above $4,650 and how future ETF inflows shape the price trend.

For Bitcoin, the focus was on whether it could regain investor attention after weeks of weaker inflows.

The data showed that while both assets carried weight, Ethereum had taken the lead in this round of market activity.

Basically, this reflects a wider shift in trading patterns and investor choices.