Ethereum Price Forecast - ETH-USD Falls to $3,965 as $134M Longs Wiped Out, ETF Outflows Pressure $4K Support

Ethereum Price Forecast - ETH-USD Falls to $3,965 as $134M Longs Wiped Out, ETF Outflows Pressure $4K Support

ETH-USD tests $3,875 support after 12% weekly slide; whales withdrew 210,452 ETH ($862M) while Grayscale sold $53.8M, leaving market torn between further downside to $3,626 or rebound toward $4,211 | That's TradingNEWS

TradingNEWS Archive 9/25/2025 5:14:15 PM
Crypto ETH/USD ETH USD

Ethereum breaks $4,000 as liquidation wave rattles markets

ETH-USD has been under heavy selling pressure, sliding to $3,965, its lowest since early August, after a week-long decline of more than 12%. The break below the $4,000 threshold triggered $134 million in long liquidations in just hours, with one trader losing 9,152 ETH ($36.4 million) in a forced unwind. Total liquidations topped $140 million, underscoring the intensity of the correction. The collapse has left retail traders exposed while whales play a split game of selling and accumulation, setting the stage for heightened volatility.

Technical landscape: $3,875 as frontline defense

Ethereum’s chart structure has shifted from bullish to corrective. The daily channel that guided ETH toward $5,000 since April has now been broken, with price clinging just above the lower boundary. The $3,900–$4,000 region forms a confluence of the 100-day moving average and horizontal demand. A failure here opens the path to $3,626 and then the 200-day MA near $2,900. On shorter timeframes, ETH already slipped under $4,200 support, with momentum following a parabolic correction curve. RSI readings are stretched: 34 on the daily, 24 on the 4-hour, both pointing to deeply oversold conditions that could fuel a temporary bounce. For bulls to regain control, ETH needs to reclaim $4,200–$4,300 and post a higher high; otherwise, sellers remain in charge.

Sentiment fractures: institutions retreat as whales reposition

Speculative positioning has been punished. Ethereum’s long/short ratio dropped to 0.95, showing traders leaning bearish, while spot ETH ETFs recorded $217 million in net outflows this week. Grayscale alone moved $53.8 million in ETH to exchanges, highlighting institutional retreat. Yet, counter-flows are notable. Ten wallets collectively withdrew 210,452 ETH ($862.9 million) from major platforms, while another whale pulled 22,100 ETH ($91.6 million) from Kraken. This divergence underscores uncertainty: some whales are clearly reducing exposure, but others are preparing for accumulation at discounted levels.

 

Macro and structural factors: Bitcoin dominance bites

Market context weighs heavily. Analysts such as Benjamin Cowen warn that Bitcoin’s dominance could climb back above 60%, siphoning liquidity away from altcoins. Ethereum also faces the challenge of absorbing supply shocks: 29% of circulating ETH is staked, reducing available liquidity but amplifying downside risk when demand cools. Meanwhile, anticipation builds around the Fusaka upgrade on December 3, 2025, which promises network efficiency gains. If institutional inflows resume alongside the upgrade, ETH could reestablish momentum toward $5,000 and beyond. Without it, downside probes toward $3,500–$3,800 remain likely.

Medium-term trajectory: path to $10,000 remains alive but delayed

Despite the near-term damage, structural forecasts still argue for ETH crossing $7,500–$10,000 by 2026, provided three pillars align: continued staking supply constraints, adoption of scaling upgrades, and institutional accumulation. ETF inflows, treasury strategies, and sovereign demand are critical variables. For now, ETH’s immediate narrative is defensive — holding $3,875–$3,900 is crucial. A confirmed rebound from here could quickly send price back to $4,211 resistance, while a failure exposes $3,626.At $3,965, Ethereum sits at a knife’s edge. Heavy liquidations, ETF outflows, and a collapsing long/short ratio argue for further downside, yet whale accumulation and oversold technicals hint at rebound potential. With December’s Fusaka upgrade looming and supply locked in staking, the long game remains bullish. In the near term, however, ETH-USD is a Hold with bearish bias, with tactical shorts favored unless $4,200 is reclaimed with conviction.

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