Bitcoin Plunges Below $112,000, Ethereum Crashes Under $4,000 - Market Correction or Buying Opportunity?

Crypto markets hit turbulence as major assets see sharp declines.

Technical Breakdown

Bitcoin's slide below the $112,000 support level signals potential short-term weakness, while Ethereum's drop under $4,000 reflects broader market sentiment. The moves come amid typical crypto volatility—because what's a quarter-million dollar coin without a little drama?

Market Psychology

Traders are watching key resistance levels as institutional money continues playing musical chairs with digital assets. The dips represent either panic or opportunity depending on your risk tolerance—and whether you bought before or after the mainstream adoption wave.

Long-term Outlook

Seasoned investors see these corrections as healthy market mechanics. After all, traditional finance needs decades to achieve this level of excitement—we manage it before breakfast. The fundamentals remain strong even as prices fluctuate.

Ethereum, on the other hand, dropped to $3996 at one point and is now trying to find support at the $4000 level.

Other major crypto assets also experienced a drawdown. As you can see, it was altcoins that suffered the most.

The market correction led to the liquidation of traders on futures contracts. More than 127,000 addresses fell under the forced closure of positions. Total losses for the day amount to more than $400 million, and most of the damage falls on long positions.

This is not the first correction in the market recently. Earlier in the week, Bitcoin also tested the area below $112,000.

One of the likely reasons for the correction in the crypto market is the threat of a U.S. government shutdown on October 1, 2025, unless a short-term funding bill (continuing resolution) is passed. This will require the approval of at least 60 members of the Senate, i.e. seven Democrats with full support of Republicans.

This indicates that the crypto market is correlated with macroeconomic factors, as equities are also seeing a drawdown. In particular, the S&P 500 index fell 0.3% overnight.

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