The crypto market is seeing a sharp pullback as the total market capitalization has slipped about 2.5% to roughly $3.8 trillion, with Bitcoin (BTC) price down close to 2% at $111,800 and Ethereum (ETH) off more than 4% to trade below $4,000.
A mix of macro pressure, heavy derivatives unwinding, and profit-taking ahead of regulatory hearings are all weighing on prices.
A big part of today’s drop comes from what traders are calling a derivatives washout. More than $1.5 billion in leveraged positions were liquidated after ETH price broke the $4,000 mark, sending a shockwave through major altcoins.
🚨 BREAKING:
— Merlijn The Trader (@MerlijnTrader) September 25, 2025
RIGHT AFTER THE BITCOIN DUMP, ONE WHALE SCOOPED UP 1,524 $BTC ($171M) FROM EXCHANGES.
WHAT DOES HE KNOW? pic.twitter.com/FPWxLO2178
Solana fell around 9% and Cardano about 7%. Data shows open interest fell 4.3% as traders cut exposure, while negative funding rates confirm there was too much leverage on the long side.
The total crypto market cap chart backs this up. After months of steady gains, the price finally lost the rising trendline that has supported the market since June. RSI sits near 31, signaling short-term oversold conditions, but it’s also a reminder that markets often need to clear excess leverage before stabilizing.
What you'll learn 👉
Bitcoin (BTC) Holds Key Support Amid Macro Jitters
Bitcoin price is holding above $111,100, a level highlighted by trader Ali as the neckline of an inverted head-and-shoulders pattern. His chart points to a possible move toward $130,000 if this support holds.
For now, though, macro forces are testing that level. Fed Chair Jerome Powell warned about “elevated inflation” earlier this week, while U.S. jobless claims came in lower than expected today.
US Unemployment Claims: Actual 218K vs 233K Forecast#forex https://t.co/1c4wKvGLGi
— Forex Factory (@ForexFactory) September 25, 2025
A stronger dollar and tighter financial conditions usually pressure risk assets like crypto. If Bitcoin can keep its footing and complete that right shoulder, it could still launch toward new highs in the coming weeks.
Ethereum (ETH) Slides Into a Classic Buy Zone
Ethereum price has taken the hardest hit, dropping about 16% from recent highs and slicing through the $4,000 psychological level.
On the daily chart shared by Merlijn the Trader, ETH is now sitting right inside the same “buy the dip” zone that preceded a big rally earlier this summer. The 50-day moving average has already been lost, but the 100-day sits just below as a possible support if sellers push further.
Merlijn’s point is that this pattern isn’t new, ETH has tested similar levels before and bounced sharply. Weak hands may panic here, but patient buyers who scale in gradually could benefit if history repeats.
Read Also: PEPE Buy Signal Appears Again: How High Could It Go Next
Outlook for the Days Ahead
The combination of macro pressure and a crowded derivatives market is the clear short-term driver of this pullback. But beneath the surface, there are still constructive signs.
Bitcoin dominance has edged higher to about 58%, suggesting capital is consolidating in the market’s most liquid asset.
Ethereum price is sitting in a key technical zone where past corrections have ended. And the total market cap is testing long-term support with oversold momentum readings.
If Bitcoin price continues to hold the $111,100 level and Ethereum is still around its 100-day average, a recovery to September highs may begin once the market has finished clearing leverage.
In the meantime, though, traders can expect to see more choppy action and be careful because new economic data like tomorrow’s U.S. Core PPI numbers can shift sentiment once again in an instant.
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