Key Notes
- ETH broke below $3,800, dropping 7% in 24 hours.
- Analysts eye $3,600 as the next key support zone.
- Spot ETH ETFs have seen $80 million in net outflows this week so far.
Ethereum BTC $104 869 24h volatility: 5.5% Market cap: $2.09 T Vol. 24h: $109.65 B is struggling to find a footing after breaking below the $3,800 support level, currently trading near $3,719 after a sharp 7% daily decline. The move comes amid rising exchange inflows and heavy selling pressure, with analysts expecting further downside before a meaningful recovery.
Crypto analyst Ted believes ETH could retest the $3,600 region, calling it the next strong support zone. He added that the second-largest cryptocurrency must reclaim the $4,000 “soon” to regain momentum.
$ETH has lost its $3,800 support level.
The next support region is around $3,600, which will most likely get retested.
For Ethereum to gain strength, it needs to reclaim $4,000 really soon. pic.twitter.com/G2PkIL76gs
— Ted (@TedPillows) October 17, 2025
This was echoed by trader Merlijn, who noted that Wintermute, a major market maker, had been sending millions in BTC, ETH, and SOL to exchanges on October 17. Notably, the last time they did this, the market saw a major dump. “Pray for your bags,” he writes.
🚨ALERT:
WINTERMUTE IS SENDING MILLIONS IN $BTC , $ETH , AND $SOL TO EXCHANGES.
THE LAST TIME THIS HAPPENED,
BITCOIN DUMPED HARD.PRAY FOR YOUR BAGS 🙏 pic.twitter.com/GtDylGXxwN
— Merlijn The Trader (@MerlijnTrader) October 17, 2025
Adding to the pressure, spot ETH ETFs recorded net outflows of around $80 million so far this week, with $56.8 million leaving on Oct. 16 alone. Institutional sentiment appears to be cooling, at least in the short term, as investors await fresh catalysts to confirm the bullish move.
Technical analyst Heisenberg pointed out that ETH currently remains in a “neutral zone” between $3,800 and $4,100, which it has retested multiple times in the past year. He also noted that the cryptocurrency has been trading above a major support trendline since late 2022.
$ETH Bulls need to hold the notable blue support trendline, break out of the green "neutral zone" with conviction, go back and retest that obvious $4,900-$5,000 mark and not look back after that.
A solid break of the blue line and the next notable support area is $3,400.… pic.twitter.com/DFPn6Psxar
— Heisenberg (@Mr_Derivatives) October 17, 2025
According to the analyst, bulls need to defend this support line and break above $4,900–$5,000, making ETH the best crypto to buy right now . However, he warned that a decisive drop below this line could drag prices toward $3,400, a level that flashed during last week’s mini crash.
What’s Next for Ether Price?
On the weekly chart , ETH is currently forming a rising wedge pattern, often considered a bearish setup if the volume is low. Moreover, Bollinger Bands indicate tightening volatility, implying that a larger directional move is near.
ETH weekly price chart with momentum indicators | Source: TradingView
The RSI is also signaling weakening momentum but not yet oversold conditions. The price action suggests ETH may consolidate or dip toward $3,600 before finding support. A rebound from this level could lead to another test of $4,000.
Popular analyst Satoshi Stacker noted on X that ETH’s MACD has flipped red on the weekly chart. He added that if confirmed at the weekly close on October 12, it historically leads to a pattern of a drop, a bounce, and then another deeper decline.
IF YOU HOLD $ETH YOU NEED TO SEE THIS!
ETH's MACD has flipped red on the weekly timeframe. If this signal is confirmed at the weekly close, it historically leads into a pattern of a drop, a bounce, and then a further drop with losses ranging from -18% to -80%. pic.twitter.com/LFlojYHzrC
— Satoshi Stacker (@StackerSatoshi) October 17, 2025
This often results in losses of 18% to 80%, according to the analyst.
Meanwhile, the broader crypto market is also reeling, with traders dubbing the selloff an “early Black Friday.” Major altcoins, including BNB BNB $1 052 24h volatility: 10.8% Market cap: $146.31 B Vol. 24h: $6.03 B , Solana SOL $177.5 24h volatility: 8.3% Market cap: $97.67 B Vol. 24h: $11.85 B , and XRP XRP $2.25 24h volatility: 6.4% Market cap: $134.79 B Vol. 24h: $8.57 B have all suffered double-digit weekly losses, suggesting low risk appetite across the market.
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