Ethereum Price: Urgent Warning as ETH Struggles Below $4K Amid Bearish Pressure

Traders watch closely as Ethereum price encounters significant hurdles. ETH, the second-largest cryptocurrency by market capitalization, recently failed to sustain its position above the critical $4,000 mark. This recurring rejection has left many market participants feeling frustrated. Furthermore, a combination of declining spot buying and notable outflows from Ethereum ETF products contributes to a challenging outlook. Investors are now questioning if ETH can regain momentum or if a deeper correction looms. This analysis explores the key factors influencing Ethereum’s current trajectory.

Ethereum Price Faces Critical $4,000 Resistance

Ethereum price recently experienced a significant setback, dropping to $3,800 after failing to hold above $4,000. This movement highlights a persistent challenge for bulls. Notably, spot Ethereum ETF investors continued their net redemptions, adding to the selling pressure. This technical setup points toward a potentially deeper correction for ETH.

The 16% recovery of Ether from its $3,500 low, reached on October 11, was short-lived. Selling activity around the $4,000 psychological barrier curtailed this rebound. “There is a strong resistance at $4K,” noted trader Philakone in a recent X post. This level has historically proven difficult to overcome. In December 2024, a similar rejection from this zone preceded a substantial 66% price drop for the ETH/USD pair. Bulls must push and sustain the price above $4,000 to secure any lasting recovery.

Analyst Daan Crypto Trades described this as a “hard level to break for the bulls.” He emphasized its critical importance in the short to mid-term. A decisive daily candlestick close above this level could get ETH “back into the previous price range and leave these lows behind.” He added, “It’s going to be an interesting battle around that ~$4.1K level.” Fellow analyst Jas Crypto echoed this sentiment, stating that this level “defines whether this pullback becomes a deeper correction or a brief reset.” If bulls successfully defend $4K, momentum could rebuild toward $5K. To signal a new uptrend, bulls must drive the Ethereum price above the $4,000-$4,300 supply zone.

Declining Demand and Ethereum ETF Outflows

ETH struggles to maintain its position above $4,000, largely due to a lack of new buyers. The spot volume delta metric clearly illustrates this trend. This indicator measures the net difference between buying and selling trade volumes. It reveals that net spot buying on exchanges remains negative, despite recent recovery attempts. This suggests that the current price rebound may lack consistent buying pressure, potentially leading to a deeper pullback. Without genuine demand, any breakout attempt might lack the necessary strength to push ETH above key resistance levels.

Demand for spot Ethereum ETF products has also been decreasing. Data from SoSoValue shows these investment products posted outflows in six of the last eight days. Monday alone saw Ether ETFs shed $145.7 million. This brought total net outflows over the past eight days to a staggering $640.5 million. These outflows indicate a waning institutional and retail interest in Ether through these investment vehicles. For bulls to have a realistic shot at returning to $5,000, ETF inflows must resume, and new ETH buyers must actively step into the market. This renewed demand is crucial for any sustained upward movement.

Bear Flag Pattern Targets $3,100 for ETH

The current price action for ETH suggests a resumption of bearish momentum. A classic bearish pattern has recently confirmed itself. Over the past 14 days, Ether’s price formed a bear flag pattern on the 12-hour chart. On Tuesday, the price broke below the lower boundary of this flag at $4,000. This signals the beginning of a significant breakdown. The measured target from the flagpole’s height projects a price around $3,120. This represents an approximate 20% drop from the current price levels.

The Relative Strength Index (RSI) remains below the 50 mark. This further suggests that market conditions continue to favor the downside. Despite this prevailing bearish outlook, some traders remain optimistic about Ether’s upside potential. They cite bullish signals from credit conditions and persistent buying by Ethereum treasury companies. Popular analyst Jelle believes that Ether is merely retesting a key breakout level around $4,000 before resuming its uptrend. He commented, “This looks very ready for a rapid expansion higher.” Jelle added, “Shakeouts are working, it seems.” This perspective offers a glimmer of hope amidst the current market anxiety, suggesting that the recent dips could be a strategic retest before a significant move upward. However, the technical indicators and spot demand trends currently lean towards a more cautious outlook for the crypto market analysis.

Judging from sentiment on CT, you’d think $ETH was in the gutter – but it’s just holding the breakout area as support. This looks very ready for a rapid expansion higher. Shakeouts are working, it seems. pic.twitter.com/IUpfnpf5VQ

— Jelle (@CryptoJelleNL) October 15, 2025

Navigating the Volatile Crypto Market Analysis

The current volatility in the cryptocurrency market demands careful consideration. Ethereum price movements are often indicative of broader trends within the altcoin space. The struggle at $4,000 for ETH is not just about a single asset; it reflects wider market sentiment. Investors are increasingly sensitive to macroeconomic factors and regulatory developments. These external pressures can significantly influence price action. The ongoing outflows from Ethereum ETF products underscore a cautious investor approach. This trend could signal a shift in capital allocation or a temporary retreat from riskier assets.

For traders, understanding these dynamics is paramount. Technical patterns, such as the bear flag, provide crucial insights into potential future movements. However, fundamental factors, including network upgrades and adoption rates, also play a vital role. While short-term price predictions can be challenging, a holistic view offers better guidance. The interplay between technical indicators, market sentiment, and institutional flows paints a complex picture. Both optimistic and pessimistic outlooks have valid points. Therefore, thorough research remains essential for anyone participating in this dynamic market.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.