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Ethereum slipped below the $4,000 threshold for the first time since early August, as spot ETH ETF outflow continued for a third straight day. At press time, Ethereum was trading at $3,988 — a 4% drop in 24 hours, extending its weekly decline to 13% and monthly loss to 10%. The token now trades 19% below its August all-time high of $4,946.
The sharp pullback triggered more than $170 million in liquidations of long positions, underscoring growing caution among leveraged traders. Yet, trading activity suggested resilience: daily spot volume rose 13% to $35.2 billion, while derivatives trading climbed 11.64% to $86.9 billion, according to CoinGlass.
The rise in both volume and open interest, now at $57.7 billion, indicates that traders are hedging against volatility rather than abandoning the market outright.
The immediate pressure came from sustained withdrawals from regulated funds. Data from SoSoValue confirmed that U.S.-listed spot ETH ETFs recorded $79.4 million in outflows on Sept. 24, extending a three-day streak of redemptions.
Fidelity’s FETH led the exits with $33.3 million, followed by BlackRock’s ETHA with $26.5 million. Grayscale, Ark 21Shares, and Bitwise also reported significant investor withdrawals.
These spot ETH ETF outflows coincided with a fragile macroeconomic backdrop. Following the Federal Reserve’s recent 25-basis-point rate cut, Ethereum briefly rallied to $4,600 on Sept. 19. But that momentum faded as traders digested weaker labor market data and opted to lock in profits.
Amid selling pressure, large investors appeared to take the opposite stance. Blockchain analytics firm Lookonchain reported on Sept. 25 that ten wallets acquired 210,452 ETH worth $862.9 million in six hours through exchanges and over-the-counter platforms including Kraken, Galaxy Digital, BitGo, and FalconX.
“Many whales are accumulating ETH,” the firm stated in a post on X, signaling confidence in Ethereum’s long-term trajectory despite the short-term drag from spot ETH ETF outflows.
Historically, such whale activity has preceded price recoveries, as deep-pocketed buyers often step in during periods of heightened retail panic.
From a technical standpoint, Ethereum’s short-term outlook has weakened. The asset broke below the midline of its Bollinger Bands at $4,408, placing the lower support zone near $3,750 in focus. The relative strength index fell to 34.5, approaching oversold territory.
Momentum indicators remain bearish. The 10-, 20-, and 50-day moving averages now act as overhead resistance, while the MACD stays negative. Support is emerging around the 100-day EMA at $3,850, with the 200-day EMA at $3,392 serving as a deeper cushion should selling intensify.
For Ethereum to reclaim bullish momentum, analysts say the price would need to retake the $4,250–$4,400 range. However, persistent spot ETH ETF outflow and macroeconomic uncertainty could push the asset toward $3,850 or lower.
The Ethereum market remains divided. Institutional investors appear to be reducing exposure through spot ETH ETF outflows, while whales are quietly amassing holdings. The tension between these forces will likely determine Ethereum’s trajectory in the coming weeks.
