Ethereum has fallen below $4,000 for the first since August, under pressure from outflows of exchange-traded funds and macroheadwinds.
You can read more about it here:
- Ethereum Price drops below $4K first time in August
- For the third day in a row, ETFs that track ETH have seen a net outflow of $79.4M.
- Whales accumulate 862M ETH in a hint of possible recovery.
At the time of publication, Ethereum traded at $3,988, down about 4% on the day before. The cryptocurrency has lost 13% of its value in the last seven days, 10% within the month and is now 19% less than the all-time peak set on August 24, which was $4,946.
A drop of over $170 millions in the market forced long-term liquidations. However, trading activity has shown signs of resilience. Ethereum’s (ETH( daily volume grew to $35,2 billion. This is up 13% over the day before, and shows that the market remains active, even though prices are down.
In derivatives markets, CoinGlass data Open interest is up 1.01% to $57.7 Billion. Volume of ETH has increased by 11.64%, and volume is now $86.9 Billion. The combination of a slight rise in volume and open interest indicates traders are hedging their positions against volatility.
Price impact of Spot ETF Outflows
The pressure was increased by the influx of products regulated. Data SoSoValue data shows that U.S. Ethereum ETFs have recorded net withdrawals of $79.4 millions on the 24th, their third day in a row.
Fidelity FETH was the most popular, with 33.3 million dollars. BlackRock ETHA came in second at 26.5 million. Grayscale and Ark 21Shares as well Bitwise saw significant withdrawals.
These withdrawals were made in the context of a changing macro-environment. After the Federal Reserve’s recent 25 basis points rate cut to 4.00–4.25%, ETH briefly jumped above $4,600 on Sept. 19.
The rally was waned, however, as traders took profit and considered the softening of labor market statistics. This move was similar to what happened in 2024, when the markets rose ahead of policy changes before retreating.
Ethereum whales buy
In the face of selling pressure, on-chain data showed a renewed interest among major investors. Lookonchain, in a post published on X Sept. 25, revealed that ten exchanges as well as over-the-counter desks (such Kraken Galaxy Digital BitGo FalconX) had amassed 210.452 Ethereum, worth $862.92 million, within six hours.
Whale activity may be read as a long-term commitment and could precede a short-term recovery if the selling pressure is eased.
Ethereum technical analysis
Technically, Ethereum has become more conservative. Now, the Bollinger Bands are focusing on the lower range around $3.750 after the price fell below $4.408 and the midline. Relative strength index (34.5) is approaching oversold levels. Momentum indicators remain weak.
MACD confirms the bearish trend by being negative. The MACD at $3,392 offers a deeper cushion in case the selling picks up speed. If selling accelerates, the 200-day EMA of $3,392 provides a cushion. Support is currently forming near to the 100 day EMA, which is $3,850.
For Ethereum to resume a bullish trajectory, it would need to recover the $4,250–$4,400 region. Securing ETF outflows A weak macroeconomic sentiment could push ETH towards $3,850 and lower.
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Source: crypto.news
