Ethereum dropped below $2,600 on October 7 as long liquidations hit a four-month high and ETF outflows accelerated, with analysts warning of a deeper correction if key support fails. The selloff comes as Bitmine, one of the world's largest ETH holders, says it is roughly 100,000 tokens away from hitting the ownership cap that will end its buying spree.
Ethereum fell 5.67% on October 7 to trade at $2,555, triggering the token's largest single-day long liquidation since June 5. CoinGlass data shows $201 million in Ethereum liquidations on the day, part of a broader selloff that wiped out $665 million across the crypto market.
Long Liquidations Hit a Four-Month High
The largest single order was an ETH/USDC position worth $26 million on Binance. The long squeeze pushed Ethereum's weighted funding rate to -0.0043%, its lowest reading since early September.
Analyst Ted Pillows notes that Ethereum is testing support at its 100-week EMA after breaking below $2,600, warning of a deeper correction if the price closes below that level. Analyst Daan Crypto adds that the long-term outlook remains bearish unless Ethereum stages a significant move higher, pointing to rising open interest despite the price decline.
ETF Outflows Accelerate
The bearish turn coincides with rising Ethereum ETF withdrawals. SoSoValue data shows $201 million in ETF outflows on October 6, the highest single-day figure since mid-September. Weekly outflows reached $252 million, the most since June 2026. Bitcoin ETFs, by contrast, took in $118 million on October 6.
Bitmine Nears Its Self-Imposed Buying Cap
Even as Ethereum slides, treasury firm Bitmine keeps accumulating the token. Chairman Tom Lee said Wednesday at TOKEN2049 in Singapore that Bitmine will stop buying once its holdings reach 5% of ETH's circulating supply, needing roughly 100,000 more ETH to get there. According to Crypto Briefing: "We thought this would take five years."
Bitmine held 6,016,414 ETH as of Monday, after buying another $41 million worth of the token last week — about 4.9% of the 122.1 million ETH in circulation, worth roughly $15.5 billion at Wednesday's price. At last week's pace, reaching the cap would take about six to seven weeks, assuming Bitmine keeps buying at a similar rate and prices hold broadly stable.
The firm also holds $643 million in cash and marketable securities, against an estimated $258 million cost for the remaining 100,000 ETH. Bitmine has bought ETH every week since launching its treasury strategy in June 2025, even as DropsTab data puts its unrealized losses at roughly $4.5 billion.
Sources: CoinGape, Crypto Briefing
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