HYPE & SUI Bleed Out as Ethereum Crashes Below $4,300 – Altcoins in Freefall
Crypto markets got a reality check today as Ethereum—the backbone of DeFi—tumbled under $4,300, dragging altcoins like HYPE and SUI into the red.
Blood in the streets? More like a fire sale. While ETH’s dip might look like a buying opportunity, the altcoin carnage suggests traders are fleeing to safer bets (or just cashing out before the next ‘rug pull’).
Remember: in crypto, ‘corrections’ happen at terminal velocity. Buckle up.
Traders brace for Jackson Hole meeting
The liquidation cascade comes ahead of Thursday's Jackson Hole symposium, with QCP Capital analysts sharing in their latest report how "some traders believe that the overnight washout reflects de‑risking ahead of the symposium," where Fed Chair Jerome Powell takes the stage.
Held each August in Jackson Hole, Wyoming, the symposium gathers the Fed, global central bankers, and policymakers.
QCP analysts added that "BTC funding rates had been warning of trouble" with rates turning negative by Saturday despite spot prices rising over the weekend.
"The U.S. PPI came in higher than expected, forcing markets to quickly scale back September rate-cut bets that earlier signs of labor market softness had elevated," Dan Chen, analyst at crypto exchange Bitunix, told Decrypt.
Chen called the selloff "a corrective pullback within an uptrend" and said the market may consolidate through Jackson Hole if ethereum "can hold support near $4,150" before resuming its advance.
However, he warned that "a breakdown risks further cascading liquidations with downside targets in the $3.9k–$3.6k range, where altcoins—especially HYPE and SUI—are likely to stay relatively weaker."
Some 75% of Ethereum's $206.79 million in liquidations in the last 24 hours came from long positions, totaling more than $180.52 million, according to CoinGlass data.
"The mounting queue of soon-to-be-unstaked ETH could be driving the asset's recent retracement," Juan Leon, Bitwise Senior Investment Strategist, previously told Decrypt.
