- •ETH sees growing liquidity around the $4,000 mark.
- •Upside liquidity has been mostly cleared in recent moves.
- •Rising Bitcoin dominance could trigger ETH downside sweep.
Ethereum Faces Critical Liquidity Battle at $4K
Ethereum is currently at a key price crossroads as a liquidity cluster forms around the $4,000 level, signaling potential volatility ahead. Traders are closely monitoring this zone, which has become a magnet for open interest and resting orders.
Over the past few weeks, most upside liquidity has been taken out, meaning stop‑losses and limit orders above the current price have already been swept by the market. This leaves downside liquidity exposed, and if market conditions shift, ETH could be primed for a deeper retracement.
Bitcoin Dominance Holds the Key
A major factor now in play is Bitcoin dominance—a metric that tracks BTC’s market share relative to the rest of the crypto market. When Bitcoin dominance rises, it often signals a rotation out of altcoins like ETH and back into BTC, typically driven by risk‑off sentiment or capital consolidation.
If Bitcoin continues to show strength, it could put downward pressure on Ethereum, prompting a sweep of the liquidity sitting just below the $4K mark. This kind of move is common in high‑leverage environments, where liquidity zones are targeted by larger market participants to capture stop orders and maximize volatility.
A decent liquidity cluster for $ETH is building around the $4,000 level.
— Ted (@TedPillows) October 1, 2025
The upside liquidity has been mostly taken out during the recent move.
If Bitcoin dominance shows more strength, Ethereum could sweep the downside liquidity. pic.twitter.com/CSDjWhSetO
Short‑Term Outlook for ETH
For now, Ethereum traders should watch the $4,000 level closely. While it currently serves as a supportive liquidity cluster, it also marks a battleground that could determine the next short‑term trend.
Should Bitcoin dominance continue to rise and ETH fails to hold this zone, a sweep toward lower support levels becomes increasingly likely. However, a consolidation above $4K with declining BTC dominance could spark a renewed push upward.