TLDR
- Ethereum dropped below $4,000 after a 6.5% fall on October 14.
- CoinGlass data shows $145M in Ethereum liquidations in one day.
- Spot Ethereum ETFs saw $428M in outflows led by BlackRock sales.
- Analyst Michael van de Poppe expects Ethereum to rebound soon.
Ethereum has come under pressure in recent days as heavy liquidations and major institutional outflows rattled the crypto market. Yet, despite the sharp decline and reports of BlackRock selling its Ethereum holdings, some analysts see an opportunity. They believe that the coin is entering a key buy zone that could lead to a rebound toward new highs if current patterns hold.
Ethereum Declines Amid Market Liquidations
Ethereum’s price dropped sharply on October 14, falling by more than 6.5% and breaking below the $4,000 level. The decline occurred as risk sentiment weakened across the global market, partly due to renewed geopolitical tensions between the United States and China. Reports indicated that new sanctions from China on U.S. shipping companies added pressure to investor confidence.
According to data from CoinGlass, Ethereum liquidations exceeded $145 million in the past 24 hours. This level of forced selling was the highest since the prior week, when over $3.8 billion worth of positions were closed across the crypto market. Liquidations often increase selling pressure as leveraged traders are forced to exit their positions, driving prices lower.
Institutional Outflows and BlackRock Selling
Institutional sentiment toward Ethereum has weakened in recent sessions. Spot Ethereum exchange-traded funds (ETFs) recorded over $428 million in outflows on Monday, up from $174 million on Friday. The rising withdrawals suggest that large investors have been trimming their exposure amid the recent price correction.
Data from market trackers show that BlackRock, a major institutional participant in the ETF market, also reduced its Ethereum holdings. Its spot Ethereum ETF saw approximately $310 million in outflows on Monday alone. Analysts say that this selling may have amplified the recent market decline and added to the downward momentum across exchanges.
Analysts See Ethereum in a Buy Zone
Despite the negative sentiment, some market analysts maintain a positive long-term outlook for Ethereum. Michael van de Poppe, a well-known crypto analyst, stated on social media platform X that Ethereum may be nearing a rebound. He noted that “the coin just needs a higher low,” suggesting that a sustained recovery could lift prices toward new resistance levels.
Technical analysis supports this view. On the weekly chart, Ethereum has formed a bullish flag pattern, which often signals a continuation of the previous uptrend. The price also appears to be retesting a former resistance level that acted as a major swing point in March, May, and November of last year. This structure suggests that buyers could regain control if the coin stabilizes above current levels.
Ethereum Price Forecast and Key Levels
Chart patterns indicate that Ethereum could face initial resistance near the psychological level of $5,000. A decisive move above that level could open the path toward $6,250, which analysts identify as the next major resistance zone. These targets are supported by the Murrey Math Lines tool, often used to identify extreme market ranges.
However, traders remain cautious about a potential move below $3,425. A break under this level would invalidate the bullish outlook and point to further weakness in the short term. Still, as volatility continues to define the market, analysts suggest that the current pullback could offer a potential entry point for long-term investors watching Ethereum’s next move.
