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Ethereum retreats under $4,000 amid growing selling pressure
Ethereum (ETH) has slipped back beneath the $4,000 threshold, trading around $3,971 as bearish momentum intensifies across crypto markets. The second-largest cryptocurrency by market capitalization is down about 5% over the last 24 hours and has posted a weekly decline near 15.5%, highlighting continued profit-taking and fading bullish conviction.
Technical indicators point to continued downside risk
RSI shows weakening momentum
Technical indicators used in Ethereum price analysis are tilting negative. The Relative Strength Index (RSI) sits around 43.60 — moving toward oversold territory but still in neutral ground. That suggests selling pressure may be easing but does not rule out further dips if market sentiment deteriorates.
MACD signals negative divergence
The MACD shows a negative divergence, with the short-term momentum line below the long-term signal line. This alignment typically flags continued downward momentum for ETH until buyers regain control or a key support level holds.
ETH price chart
Whale flows and ETF activity shaping short-term moves
Large investors and institutional flows are playing a notable role in the latest correction. Spot Ethereum ETFs recorded a net outflow of $428.52 million on October 13, marking the third straight day of withdrawals. BlackRock’s ETHA fund was responsible for $310.13 million of that outflow, underscoring how institutional selling can amplify short-term volatility in the ETH market.
Buy-the-dip activity from some investors
Despite outflows, some whales and funds continue to accumulate. Bitmine — associated with Tom Lee — reportedly bought about $834 million worth of ETH over the past week, demonstrating that opportunistic accumulation is occurring alongside profit-taking by others.
Key support and resistance levels to watch
For traders and long-term investors focused on risk management, the $4,000 level has emerged as a near-term psychological support zone. A decisive break below could push ETH toward lower support near $3,965. On the upside, immediate resistance sits at $4,263; a confirmed breakout above that level could open the path toward $4,500 and potentially $4,750 if bullish momentum returns.
Outlook: cautious but data-dependent
The short-term outlook for Ethereum remains cautious. Continued negative signals from the MACD and neutral-to-weak RSI mean downside risk persists, particularly if ETF outflows continue and whales increase selling. Conversely, sustained accumulation by large holders and a rebound above $4,263 would likely restore confidence and could trigger a renewed rally. Traders should monitor on-chain whale transactions, ETF flow data, and key technical levels to better gauge the next meaningful move for ETH.
Source: crypto
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