- Inflows into Ethereum ETFs indicate smart money buying despite short-term weakness.
- Whales are trimming positions while mid-sized “sharks” drive accumulation.
- Heavy ETH liquidations have intensified bearish sentiment.
Ethereum (ETH) finds itself at a critical juncture as price tests support near $3,800 following a sharp pullback from recent highs.
Analysts are weighing technical damage against on-chain signals that point in different directions.
Ethereum price under bearish pressure
Recently, ETH slipped below $4,000 and is now trading in the mid-$3,800s.
The 24-hour range shows daily swings between $3,833.75 and $4,051.26. Analysts identify $3,800–$3,850 as the nearest defensive band and $3,500–$3,400 as a deeper liquidity zone should sellers persist.
Notably, ETH has fallen below the converged 20-, 50- and 100-EMA, which now sit roughly between $4,083 and $4,238 and act as resistance.
Momentum indicators are weak, with the four‑hour RSI near 29, signaling oversold conditions that often precede a short-term relief rally.
Whales offload while sharks accumulate
On-chain flow metrics show significant exchange inflows, including a recent roughly $66.7 million transfer to spot exchanges.
That movement coincided with ETH tumbling below $4,000 and suggests some holders moved coins to exchanges to sell.
Large wallets holding more than 100,000 ETH have sharply reduced positions—an action many analysts interpret as increased selling by the largest holders.
At the same time, mid-sized entities—addresses holding between 10,000 and 100,000 ETH—have been accumulating and taking a more prominent role in on-chain ownership dynamics, as highlighted by Joao Wedson.
Supply transfers from the largest wallets toward a concentrated set of mid-sized “shark” addresses have pushed the Gini coefficient higher after months of decline, underscoring renewed ownership concentration among wealthier addresses.
The number of Ethereum whales is dropping sharply – and the sharks are now in the game!
It’s the sharks (10k–100k ETH holders) who have been accumulating and taking a larger share of the market.
Meanwhile, the Gini coefficient has stopped falling and is starting to rise again,… pic.twitter.com/Lk2E6saulJ
— Joao Wedson (@joao_wedson) September 24, 2025
While some view this redistribution as a healthy market dynamic, others see a double-edged sword: it reduces selling pressure from one class of holders but raises concentration risk among fewer addresses.
Liquidations add pain as ETFs record headline inflows
Ethereum’s correction triggered substantial market liquidations, with roughly $409 million in long ETH positions wiped out.
Futures funding rates for ETH have turned negative recently, according to industry data, adding momentum to short-term selling.
Institutional flows, particularly around Ethereum ETFs, present a mixed picture: some funds have seen large inflows while others have experienced notable outflows.
Over the past week, more than $560 million reportedly moved into ETH-related funds, with certain BlackRock-led products among the largest recipients, even as REX and Osprey launched the first U.S. staking-linked Ether ETF.
Ethereum price outlook
Market views diverge sharply. Long-term bulls like Ted Pillows argue ETH could eventually trend above $10,000 this cycle, though he expects a short-term revisit to the $3,600–$3,800 area.
$ETH is going above $10,000 this cycle.
But before that, a correction will happen, and right now, it’s happening.
I think ETH could drop towards the $3,600-$3,800 level before a reversal and a new ATH. pic.twitter.com/Yy87rjHVAB
— Ted (@TedPillows) September 23, 2025
Critically, reclaiming the $4,083–$4,330 zone would ease downward pressure and could clear the path back toward $5,000.
Conversely, failure to hold key support would expose lower ranges at $3,162 and $2,874, while the 200-day EMA sits as structural support near $3,350.