Ethereum’s Turbulent Descent: Navigating the $3,500 Support Test Amid Billion-Dollar Liquidations

Ethereum has plunged to a concerning two-month low, breaking below the critical $3,900 support level as a massive cryptocurrency selloff sweeps through digital asset markets. The current trading environment has become particularly treacherous for bullish investors, with nearly $1 billion in total liquidations occurring across the crypto sector this week alone. Ethereum-specific liquidations reached a staggering $312 million, with the majority coming from long positions that were caught off-guard by the sudden downward momentum. The severity of the situation is highlighted by warnings from veteran analyst Ted Pillows, who projects that Ethereum could experience additional declines of 10-15% from current levels. This pessimistic forecast suggests ETH may test the $3,500 price range before any meaningful recovery can materialize. The institutional landscape has added further pressure to Ethereum's price action, with notable exits from major players like BlackRock contributing to the selling pressure. This combination of retail liquidations and institutional departures has created a perfect storm for Ethereum, which now faces its most significant challenge since the previous market downturn. The timing of this decline is particularly noteworthy given Ethereum's previous resilience during earlier market turbulence. Market participants are now closely monitoring whether the projected $3,500 level will hold as support or if further downside awaits. The broader implications for the cryptocurrency ecosystem remain significant, as Ethereum's performance often serves as a bellwether for altcoin markets and decentralized finance applications that rely heavily on the Ethereum network. As the market digests these developments, all eyes remain fixed on whether Ethereum can stabilize or if the predicted further decline will materialize in the coming trading sessions.

Ethereum Hits 2-Month Low Amid Market Selloff, Analysts Predict Further Decline

Ethereum plunged to a two-month low, trading below $3,900 as a broader crypto selloff rattled the market. Nearly $1 billion in liquidations swept through the sector this week, with ETH accounting for $312 million—primarily from long positions. Veteran analyst Ted Pillows warns the asset could slide another 10%-15%, potentially testing $3,500 before recovery.

Institutional exits compounded the pressure. BlackRock offloaded $25.6 million worth of ETH, while options markets reflected bearish sentiment through increased put activity. The $3,800 level now serves as critical support—a breach could accelerate declines, echoing Bitcoin's 30% correction after its 2020 breakout.

Ethereum Price Prediction: ETH Could Rally to $10K as Bulls Hold $4K Support

Ethereum's market trajectory is drawing intense scrutiny as analysts project a potential surge toward $10,000. The cryptocurrency, currently consolidating below $4,000 after a recent pullback, exhibits strong technical resilience. Key support at $4,000 remains intact, bolstered by rising ETF inflows and macroeconomic tailwinds.

Technical indicators suggest accumulating momentum. The RSI and MACD show early signs of bullish reversal, while exchange volumes remain elevated. "ETH will likely retest $3,600-$3,800 before its next major ascent," says Ted Pillows, a prominent analyst followed by 200,000+ traders. His models indicate the market is transitioning from the belief phase to potential euphoria.

Altcoin season dynamics add fuel to Ethereum's outlook. As Bitcoin dominance wanes, capital appears to be rotating into ETH and select meme coins. While Maxi Doge captures speculative interest, institutional focus remains firmly on Ethereum's infrastructure advantages.

Ethereum ETFs See Fourth Straight Day of Outflows as ETH Price Tests $3,800 Support

Institutional investors continue retreating from Ethereum-focused products, with ETFs posting $251 million in net outflows on September 25—the largest single-day redemption this week. Fidelity's FETH fund bore the brunt of the sell-off, accounting for $158 million of the total withdrawals.

The sustained exodus has pushed ETH below the psychologically important $4,000 level, with the cryptocurrency now testing support around $3,800. Week-to-date outflows exceed $547 million, reflecting growing bearish sentiment among traditional finance players.

While Bitcoin ETFs face similar pressures, their relative resilience highlights a diverging institutional appetite. The ethereum ecosystem's struggle to maintain traction comes as developers prepare for major network upgrades aimed at improving scalability.

HyperVault Sparks Rug Pull Fears After $3.6M Vanishes

Hypervault Finance faces allegations of a rug pull after $3.6 million in crypto assets were abruptly drained from the platform. The funds were bridged from Hyperliquid to Ethereum, converted to ETH, and funneled through Tornado Cash—a mixing service notorious for obscuring transaction trails. The protocol's official X account disappeared shortly after, intensifying suspicions of an exit scam.

On-chain analysts at PeckShield flagged the abnormal withdrawals, noting the telltale pattern of decentralized finance exploits. Rug pulls remain a persistent threat in 2025, with high-profile cases like MetaYield Farm and MANTRA previously inflicting billions in investor losses. The incident underscores the risks of unaudited protocols and the enduring appeal of privacy tools for bad actors.

Ethereum Breaches $4K Support Amid Macro Uncertainty and ETF Slowdown

Ethereum plunged below the psychologically critical $4,000 level during early Thursday trading, marking its first sub-$4K print since August. The second-largest cryptocurrency briefly touched $3,999 before paring losses to $4,037—a 2.91% daily decline that erased weeks of consolidation.

The breakdown followed failed support at $4,200, triggering $212.9 million in ETH liquidations amid broader altcoin carnage. "This wasn't panic selling but a perfect storm of technicals, macro fears, and leverage unwinding," noted Rachael Lucas of BTC Markets. Institutional flows into spot ETH ETFs have slowed to a trickle since September's record highs.

On-chain data reveals accumulation by long-term holders despite the dip. Staking participation remains robust at 27% of circulating supply, while smart contract deposits suggest developers continue building through volatility. The $4K threshold now becomes pivotal resistance as traders watch for either consolidation or further downside.

Ethereum's Fusaka Upgrade to Revolutionize L2 Scaling with PeerDAS

Ethereum co-founder Vitalik Buterin has underscored the transformative potential of the upcoming Fusaka upgrade, particularly its PeerDAS feature, in resolving Layer 2 scaling challenges. The upgrade, slated for December 3, aims to redefine how nodes verify blockchain data, enhancing efficiency and scalability across the Ethereum network.

Peer Data Availability Sampling (PeerDAS), introduced via EIP 7594 in January 2024, enables nodes to confirm blockchain data availability without downloading the entire dataset. "PeerDAS is attempting something unprecedented: a live blockchain where no single node must download full data," Buterin remarked. By allowing nodes to sample small data chunks and statistically verify network-wide availability, the system directly alleviates bottlenecks for rollups, where LAYER 1 data availability has been a critical constraint.

The Fusaka upgrade integrates PeerDAS alongside other optimizations, positioning Ethereum to significantly boost throughput for Layer 2 solutions. This advancement could catalyze broader adoption of decentralized applications and solidify Ethereum's dominance in smart contract platforms.