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<p>Ethereum’s latest rally has once again lost momentum, with the cryptocurrency struggling to stay above the $4,000 mark. With weak demand and declining spot ETF inflows weighing on sentiment, analysts warn that Ether (ETH) could face a deeper correction toward $3,100 if buyers fail to regain control.</p>
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  <h2 class="in-brief--title" id="in-brief">In brief</h2>
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   <li>Ethereum fails to sustain above $4,000, triggering renewed selling pressure and caution among traders.</li>
   <li>Analysts warn a drop toward $3,100 is possible if buyers can’t regain control near the critical $4K resistance zone.</li>
   <li>Spot ETF outflows and weak buyer participation highlight fading market confidence in Ethereum’s short-term strength.</li>
   <li>A breakout above $4,000–$4,300 could mark the start of a new bullish phase, with $5,000 as the next key target.</li>
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<h2 id="h-ethereum-technicals-flash-warning-as-4-000-zone-triggers-renewed-sell-offs">Ethereum Technicals Flash Warning as $4,000 Zone Triggers Renewed Sell-Offs</h2>
<p><a href="https://www.cointribune.com/en/bitcoin-ethereum-and-xrp-in-free-fall-is-this-the-end-of-the-cycle/" target="_blank" rel="noopener noreferrer nofollow">Ether slipped</a> to around $3,800 on Tuesday, marking another failed attempt to hold above $4,000. The pullback follows continued net redemptions from spot Ethereum ETFs and a weakening technical setup signaling a potential move lower.</p>
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<p>Ether climbed 16% from its recent low of $3,500, but selling pressure quickly built near the $4,000 psychological level. Market watchers observed that this area has consistently acted as a strong resistance point.</p>
<p>Trader Philakone noted that Ethereum continues to face strong resistance near the $4,000 mark—a level that previously triggered a major sell-off in December 2024, resulting in a 66% decline.</p>
<h2 id="h-ethereum-bulls-face-critical-4-000-test-as-analysts-eye-breakout-zone">Ethereum Bulls Face Critical $4,000 Test as Analysts Eye Breakout Zone</h2>
<p>Crypto commentator Daan Crypto Trades emphasized that bulls must push and hold the price above $4,000 to confirm a recovery. He explained that repeated failures to break higher could signal <a href="https://x.com/DaanCrypto/status/1980333456371380615" target="_blank" rel="noopener noreferrer nofollow">further weakness in the short to mid term</a>.</p>
<p>Other market analysts also weighed in on the topic:</p>
<ul>
 <li>Daan Crypto Trades noted that a daily close above $4,000 could help Ethereum re-enter its previous trading range and move away from recent lows.</li>
 <li>He pointed out that the key resistance zone around $4,000–$4,100 will likely see a strong battle between buyers and sellers.</li>
 <li>Jas Crypto added that this level will determine whether the current pullback develops into a deeper correction or serves as a brief pause before the next upward move.</li>
 <li>According to him, the asset could potentially reach $5,000 if the <a href="https://x.com/JasCrypto_/status/1980196946372370813" target="_blank" rel="noopener noreferrer nofollow">bulls successfully defend the $4,000 price level</a>.</li>
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<p>Analysts agree that a sustained breakout above the $4,000–$4,300 zone would be the first sign of a new bullish phase.</p>
<h2 id="h-buyer-fatigue-limits-upside-momentum">Buyer Fatigue Limits Upside Momentum</h2>
<p>Despite several rebound attempts, Ether’s price remains capped below $4,000 as buying interest continues to fade. Data from spot exchanges show weak participation from new buyers—signaling that the recent recovery lacks conviction.</p>
<p>The spot volume delta, a metric measuring the balance between buying and selling volumes, remains negative across major exchanges. This indicates that selling activity still outweighs buying pressure, reducing the likelihood of a strong breakout in the near term.</p>
<p><a href="https://www.cointribune.com/en/bitcoin-and-ethereum-etfs-see-755m-withdrawn-following-volatile-weekend/" target="_blank" rel="noopener noreferrer nofollow">ETF activity</a> further reinforces this trend. Data from SoSoValue showed that spot Ethereum ETFs have recorded outflows in six of the past eight trading days.&nbsp;</p>
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<figure class="wp-block-image size-large"><img width="1024" height="372" src="https://www.cointribune.com/app/uploads/2025/10/image-54-1024x372.png" alt="Spot Ethereum Flows">
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<p>On Monday alone, Ether investment vehicles experienced <a href="https://m.sosovalue.com/assets/etf/us-eth-spot" target="_blank" rel="noopener noreferrer nofollow">$145.7 million in investor redemptions</a>, bringing total outflows for the past week to $640.5 million. For sentiment to improve, ETF inflows and broader market demand must return. Without fresh buying momentum, analysts warn that any move above $4,000 could be short-lived.</p>
<h2 id="h-bear-flag-breakdown-points-to-3-100-target">Bear Flag Breakdown Points to $3,100 Target</h2>
<p>From a technical perspective, Ether’s price action has formed a <a href="https://www.cointribune.com/en/ethereum-faces-what-could-be-the-biggest-bear-trap-yet-this-month/" target="_blank" rel="noopener noreferrer nofollow">bearish continuation pattern</a> known as a “bear flag” on the 12-hour chart. The pattern confirmed when ETH fell below the flag’s lower boundary at $4,000 on Tuesday, signaling a potential move lower.</p>
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<p>Here are other key technicals and trends to note:</p>
<ul>
 <li>The bear flag pattern points to a potential downside target near $3,120, indicating a possible 20% drop from current prices.</li>
 <li>The Relative Strength Index (RSI) remains below the neutral 50 level, showing that market momentum still favors sellers.</li>
 <li>Some traders maintain a positive outlook, viewing the recent decline as a healthy correction within Ethereum’s broader uptrend.</li>
 <li>Analyst Jelle suggested that ETH may be retesting the key breakout level around $4,000 before attempting to resume its upward momentum.</li>
</ul>
<p>While short-term signals suggest further weakness, many investors are watching closely to see whether bulls can reclaim $4,000. A decisive recovery above this level could shift market sentiment and reignite the push toward $5,000. Until then, Ethereum remains in a delicate position, balancing between a <a href="https://www.cointribune.com/en/ethereum-at-10000-the-still-viable-bet-of-tom-lee-and-arthur-hayes/" target="_blank" rel="noopener noreferrer nofollow">possible rebound</a> and the risk of another leg down toward $3,100.</p>

Ethereum Struggles at $4,000 as ETF Outflows Raise Risk of Further Downside

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