Crypto market update: Ethereum and major altcoins lag after $1.5b wipeout

The crypto market has yet to recover from the heavy liquidations set in motion a day prior, with Ethereum barely making moves alongside other altcoins like Solana and HYPE that remain in the red zone. Is there any chance of recovery?

On Sept. 23, the overall crypto market cap has fallen off its peak at $4 trillion. It currently stands just below the threshold, at $3.98 trillion and continues to dip lower following the massive chain of liquidations the market experienced just the other day. The drop in market cap reflects major altcoins lagging behind their usual gains.

Ethereum (ETH) in particular has suffered a major blow from the wipeout, falling from its previous position at $4,500. In fact, analysts predict that ETH may consolidate and decline even further if it fails to hold up against the psychological $4,000 barrier.

Following the drop, ETH appears to be consolidating sideways in a narrow band just above $4,200, suggesting that sellers may be attempting to boost it back to previous levels.

The Relative Strength Index fell deeper into oversold territory during the sell-off period, but has since rebounded to around 47.82. It managed to recover from extreme lows near 20. This shift indicates that bearish momentum is cooling, and buyers are tentatively stepping back in, though the rebound lacks strong conviction so far.

Can Ethereum bounce back?

In order to bounce back from its current lows, ETH must reclaim the $4,300 to $4,350 zone. If the ETH price fails to climb up above the resistance zone, it could fall deeper below the $4,000 psychological and technical support level. Sustained trading below that threshold could pave the way for an even deeper correction toward the $3,800 area.

Although Ethereum’s core fundamentals remain strong, it appears that the market is sill reeling from the recent shock of the mass liquidations. Despite this fact, a strong bounce supported by volume could pave the way for a retest of $4,500, but if consolidation turns into weakness, another wave of downside cannot be ruled out.

Aside from Ethereum, major altcoins like Solana, Hyperliquid, and Binance Coin have also fallen off the wagon.

Solana

Similar to Ethereum, Solana (SOL) has suffered a sharp correction after the mass liquidations, falling from $235 to briefly touch near $210 before stabilizing around $219. The drop reflects broader market weakness, as selling pressure accelerated and forced a breakdown from the mid-range consolidation that had held over the past week.

The move lower has left SOL trading below its recent highs, with sellers still dominating the short-term trend. The RSI shows a bounce from oversold territory, now sitting near 45, suggesting that bearish momentum is cooling and buyers are cautiously re-entering the market.

Unless SOL can reclaim its place within the $225 to $230 range, the only recovery it will experience may be a temporary one. On the other hand, if it continues to decline, the $210–$205 zone will serve as a key support level to watch.

Hyperliquid

Hyperliquid (HYPE) has been under major selling pressure, having dropped from $56 toward the $46 region before seeing a brief bounce back to around $48.7. This steady downtrend highlights persistent bearish sentiment, as the token failed to hold key support levels and slid to multi-week lows before buyers stepped in to provide temporary relief.

The RSI, however, has sharply rebounded from oversold conditions, climbing to 53.66, which suggests that momentum is shifting toward the bulls in the short term. This recovery signals a potential bottoming attempt, but confirmation will depend on whether HYPE can push above $50 and sustain that level.

Binance Coin

Mirroring other aforementioned altcoins, Binance Coin (BNB) also pulled back from its previous peak at above $1,060. Its current price has fallen to the $980 region before attempting a modest climb back to $997. This correction follows a strong rally earlier in the week, showing that profit-taking has set in after BNB’s impressive climb.

Despite the retracement, the token is still holding well above its mid-September levels.

Binance Coin’s RSI has rebounded from near oversold conditions, currently sitting at 48, which reflects easing bearish pressure and hints at a potential stabilization phase. If buyers can push BNB back above the $1,000–$1,020 resistance zone, momentum could shift upward again, setting the stage for a retest of the $1,050–$1,060 highs.

On the downside, failure to hold $980 may expose BNB to deeper corrections, with the $950 level serving as the next support level.