- Ethereum drops below $3,800 as selling pressure and exchange inflows increase.
- Analysts predict a retest of $3,600 before any meaningful recovery.
- Technical signals show weak momentum but potential for rebound if support holds.
Ethereum — ETH , is under heavy selling pressure after dropping below the key support level of $3,800 over the past week. The token is now trading around $3,719 after a sharp drop of 7% in one daily. Market sentiment has turned cautious as inflows to exchanges accelerate while institutional funds are pulling back. Traders will be paying close attention to whether Ethereum can find support soon or whether further losses are awaiting before the next leg upward.
Analysts Eye $3,600 as the Next Key Level
Crypto analyst Ted believes Ethereum could retest the $3,600 range, calling it the next major support. He noted that Ethereum must reclaim $4,000 soon to regain momentum. Trader Merlijn echoed this outlook, pointing to large transfers from Wintermute, a major market maker, to multiple exchanges. The last time similar movements occurred, the market faced another steep correction.
Adding to the pressure, spot ETH ETFs recorded net outflows totaling about $80 million this week. Nearly $57 million left on October 16 alone, signaling cooling interest among institutional investors. Analysts say that buyers may be waiting for stronger bullish signals before returning. Until then, Ethereum could face extended consolidation or further downside.
Technical analyst Heisenberg described Ethereum’s current position as a “neutral zone” between $3,800 and $4,100. The range has acted as both support and resistance several times over the past year. He also highlighted a key trendline that has held since late 2022. If buyers defend this trendline, a rebound remains possible. However, a clear break below could expose Ethereum to a drop toward $3,400, a level seen during last week’s quick selloff.
Signals Point to Weak Momentum but Potential Reversal
Ethereum’s weekly chart displays a classic rising wedge pattern that could be seen as a bearish pattern when volume decreases. Notably, the Bollinger Bands are contracting indicating that a large move is imminent. The RSI is indicating fading momentum, however, as of now, it is not in oversold conditions. According to analysts, Ethereum is expected to retest $3,600 before attempting to push higher again.
A successful rebound from that level could spark a push back toward $4,000. Still, popular analyst Satoshi Stacker warned that Ethereum’s MACD recently flipped red on the weekly chart. Historically, this pattern signals a short-term drop followed by a brief bounce and another decline. He noted that similar setups in the past have resulted in losses between 18% and 80%.
The broader market also reflects bearish sentiment. Major altcoins posted double-digit weekly losses as traders brace for more volatility. Some have labeled the current pullback an “early Black Friday” for crypto, emphasizing how risk appetite has cooled across the board. Despite the negative tone, several analysts agree that a deeper correction could create long-term buying opportunities.
