ETH Bulls Get Obliterated as Price Plunges Below Critical Support Level

Ethereum's foundation just cracked—and the bulls are getting buried in the rubble.

Technical Breakdown

ETH sliced through its most crucial support level like a hot knife through butter. The move caught leveraged longs completely off guard, triggering a cascade of liquidations that accelerated the downward spiral. Market sentiment flipped from cautiously optimistic to outright panic in under 24 hours.

Market Impact

Traders who piled into long positions now face margin calls while shorts feast on the volatility. The options market shows massive put buying as protection premiums skyrocket. Even the 'buy the dip' crowd seems hesitant to catch this falling knife.

Broader Implications

This isn't just an ETH problem—when the second-largest crypto bleeds, the entire altcoin complex feels the pain. DeFi protocols see TVL dropping faster than a banker's promises during a bull market.

The breakdown leaves Ethereum testing levels not seen since the last major correction. Either this becomes the ultimate contrarian buying opportunity, or it's the start of a much deeper cleanse. Sometimes markets need to break before they can make new highs.

Ethereum Slips Below Crucial Support Zone

Ethereum (ETH) has dropped below the key $4,100 level, breaking down from its recent range and putting bullish momentum on pause. The MOVE follows a sharp correction of nearly 20% over the past two weeks. At the time of writing, ETH trades around $3,900, marking a weekly decline of over 12%.

Analyst Daan crypto Trades noted the importance of the $4,090 level as a cycle high. “If the weekly closes below the ~$4.1K level,” he stated, “watch closely if there’s additional continuation down over the days and weeks following it.” He added that the current move could represent a false breakout, but confirmation would only come if the price starts grinding back up.

A separate chart shared by Trader Tardigrade shows a repeating fractal structure when comparing ETH’s current price pattern to the 2020 cycle. It reflects a V-shaped recovery followed by consolidation below key resistance, similar to the lead-up to Ethereum’s breakout in the previous bull market.

The asset is currently sitting just below the $4,100 zone, which matches the resistance level shown in the earlier cycle. The setup suggests that if ETH follows the same path, a breakout could follow. However, that WOULD require a clean move above resistance and sustained buying. Trader Tardigrade posted,

$ETH/3-day#Ethereum is gathering momentum for an upcoming Massive Surge pic.twitter.com/lzCqxqYFe7

— Trader Tardigrade (@TATrader_Alan) September 26, 2025

Support Retest Around 20-Week MA

Michaël van de Poppe identified the current zone between $3,800 and $4,000 as an important area of support. ETH is now approaching the 20-week moving average, which has often acted as a dynamic support level in previous uptrends.

To me, this is the ideal zone to start accumulating positions in $ETH.

It’s a higher timeframe support test and approaching the 20-Week MA. pic.twitter.com/X0qwGE8oho

— Michaël van de Poppe (@CryptoMichNL) September 26, 2025

The weekly chart he shared shows a support block that had previously acted as a base for upward moves. If the zone holds, it could stabilize the price. If not, lower levels around $2,850 may be tested.

MVRV Bands Point to Key Resistance and Downside Risk

Ali Martinez used the MVRV Extreme Deviation Pricing Bands to mark the next areas of interest. He noted that $4,840 is the critical level to break in order to reverse the current downtrend. According to the MVRV model, a move above this line could lead to a push toward $5,860.

On the downside, Ali warned that failure to reclaim this level could bring ETH back to $2,750, aligning with the -0.5σ deviation band.

“Fail, and a correction to $2,750 comes into play,” he wrote.

ETH currently trades above the MVRV mean at $3,797, but if that level is lost, downside pressure may increase.