Ethereum‘s value has dropped below the $4,000 threshold for the first time since early August. Driven by outflows from exchange-traded funds (ETFs) and broader market pressures. At the moment, Ethereum is priced at $3,988, marking a decline of approximately 4% from the previous day. Over the last week, Ethereum has seen a 13% drop, and over the past month, it has fallen by 10%, sitting 19% below its peak of $4,946, which was reached in late August.
Impact of Liquidations and Trading Activity
This price decrease has led to over $170 million in long position liquidations. Despite this, trading activity remains strong, with Ethereum’s daily volume increasing to $35.2 billion—an increase of more than 13% from the previous day. Data from CoinGlass shows that Ethereum price in the derivatives market rose by 11.64% to $86.9 billion, with open interest up by 1.01% to $57.7 billion. These trends suggest that traders are adjusting their positions and hedging against potential downside risks.
ETF Outflows Driving Price Pressure
Ethereum’s price pressure has also been fueled by outflows from its spot ETFs. On September 24, U.S.-based spot Ethereum ETFs saw a net outflow of $79.4 million, marking the third consecutive day of withdrawals. Fidelity’s FETH led with $33.3 million in redemptions, followed by BlackRock’s ETHA at $26.5 million. Other issuers, including Grayscale, Ark 21Shares, and Bitwise, also experienced significant outflows. These withdrawals occurred amid a shifting macroeconomic environment, where Ethereum briefly surged above $4,600 following the Federal Reserve’s rate cut, before the rally weakened as traders took profits and market sentiment softened.
Whale Activity Indicates Long-Term Confidence
On-chain data reveals a resurgence of interest from large investors, also known as whales. On September 25, ten wallets, using exchanges and over-the-counter platforms such as Kraken and Galaxy Digital, accumulated 210,452 Ethereum, valued at $862.9 million, within just six hours. This type of whale activity is often seen as a sign of long-term confidence. And could signal that the selling pressure may ease, potentially leading to a short-term price rebound.
Technical Analysis of Ethereum’s Price Movement
From a technical perspective, Ethereum price has adopted a more cautious stance. With attention now focused on the lower range around $3,750 after breaking below the midline of the Bollinger Bands at $4,408. Momentum indicators remain weak, with the relative strength index (RSI) at 34.5, nearing oversold levels. The 10-, 20-, and 50-day moving averages are positioned above the current price. Acting as resistance, while the negative MACD signals continued bearish momentum. The 200-day exponential moving average (EMA) at $3,392 provides additional support, and Ethereum is currently finding support near the 100-day EMA at $3,850.
Outlook for Ethereum
For Ethereum to regain a bullish trajectory, it would need to recover and sustain levels between $4,250 and $4,400. If ETF outflows continue and the broader macro sentiment remains weak, Ethereum price could be driven further down to around $3,850 or lower.
