Ethereum Plunges Below $4K Milestone as Spot ETH ETFs Bleed for Third Consecutive Day
Ethereum's bull run hits a wall as prices tumble below the psychological $4,000 barrier.
ETF Exodus Accelerates
Spot Ethereum ETFs record net outflows for 72 straight hours—institutional investors appear to be taking profits amid market uncertainty. The $4K support level crumbles as selling pressure intensifies across major exchanges.
Market Mechanics Exposed
Traders watch key resistance levels while derivatives data shows increased put option activity. The three-day outflow pattern mirrors traditional finance's fickle relationship with crypto assets—here for innovation until quarterly reports demand conservative positioning.
This dip represents either a healthy correction or the start of deeper trend reversal. Either way, Wall Street's 'hot money' proves once again that crypto fundamentals matter less than portfolio rebalancing schedules.
Spot ETH ETF outflows weigh in on price
Flows into regulated products added to the pressure. Data from SoSoValue shows that U.S. spot Ethereum ETFs recorded a combined $79.4 million in net outflows on Sept. 24, their third straight day of withdrawals.
Fidelity’s FETH led redemptions with $33.3 million, followed by BlackRock’s ETHA at $26.5 million. Other issuers, including Grayscale, Ark 21Shares, and Bitwise, also saw large outflows.
The withdrawals came against the backdrop of a shifting macro environment. Following the Federal Reserve’s recent 25 basis point rate cut to 4.00–4.25%, ETH briefly jumped above $4,600 on Sept. 19.
However, the rally waned as traders took profits and weighed softening labor market data. The MOVE echoed patterns seen in 2024 when markets rallied ahead of policy shifts before retracing.
Ethereum whales are buying
On-chain data revealed a resurgence of interest from major investors amid the selling pressure. On a Sept. 25 post on X, Lookonchain revealed that ten wallets, using exchanges and over-the-counter desks such as Kraken, Galaxy Digital, BitGo, and FalconX, amassed 210,452 Ethereum worth $862.9 million in just six hours.
Many whales are accumulating $ETH!
In the past 6 hours, 10 wallets have received 210,452 $ETH($862.85M) from Kraken, Galaxy Digital OTC, BitGo, and FalconX. pic.twitter.com/JxQOBV9g7Y
Such whale activity is often read as a sign of long-term conviction and can precede short-term recoveries if selling pressure eases.
Ethereum price technical analysis
From a technical standpoint, Ethereum’s structure has turned more cautious. The lower band around $3,750 is now in focus after the price broke below the Bollinger Bands’ midline at $4,408. Momentum indicators are still weak, with the relative strength index at 34.5, approaching oversold territory.
The 10-, 20-, and 50-day moving averages are all above the current price and act as resistance, while the MACD is negative, confirming bearish momentum. The 200-day EMA at $3,392 offers a deeper cushion in case selling picks up speed, while support is currently forming close to the 100-day EMA at $3,850.
For Ethereum to resume a bullish trajectory, it WOULD need to recover the $4,250–$4,400 region. Sustained ETF outflows and weak macro sentiment may push ETH toward $3,850 or lower.
