- Inflows into Ethereum ETFs indicate prudent capital allocation despite short-term weakness.
- Whales are reducing holdings while mid‑sized “sharks” are accelerating accumulation.
- Large ETH liquidations have intensified bearish sentiment.
Ethereum (ETH) stands at an important crossroads as the price tests support near $3,800 following a sharp decline from recent highs.
Analysts are weighing technical damage against on‑chain signals that point in different directions.
Ethereum price faces bearish pressure
ETH recently slipped below $4,000 and is trading in the mid‑$3,800s. Over the past 24 hours the intraday range has been roughly $3,833.75 to $4,051.26. Many analysts view the $3,800–$3,850 band as the near‑term defensive line and list $3,500–$3,400 as a deeper liquidity zone should sellers push further.
Notably, the price is trading beneath a clustered set of 20, 50 and 100 EMA levels, which currently sit around $4,083–$4,238 and act as resistance.
Momentum indicators are also weakening: the 4‑hour RSI is near 29, a level that often accompanies oversold conditions before short relief rallies.
Whales shed while sharks accumulate
On‑chain flow indicators show notable exchange inflows, with roughly $66.7 million recently routed to spot venues. This movement coincided with ETH breaking below $4,000 and suggests some holders moved coins to exchanges to sell.
Large wallets holding more than 100,000 ETH have materially reduced positions, a change 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 on a more significant role in on‑chain ownership dynamics, as highlighted by researcher Joao Wedson.
The shift of supply from the largest wallets to a concentrated set of mid‑sized “sharks” has pushed the Gini coefficient higher after months of decline, underscoring renewed 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
Some observers view these flows as a healthy redistribution of supply; others see a double‑edged sword that reduces a single class’ selling pressure while increasing concentration risk among remaining holders.
ETF inflows amplify the narrative, liquidations sour the mood
The recent ETH correction triggered large market liquidations, with roughly $409 million in long positions wiped out. Funding rates for ETH futures have also turned negative, accelerating short‑term selling momentum.
Institutional flows, particularly into Ethereum ETFs, present a mixed picture: some funds have experienced substantial inflows while others reported significant outflows. Despite this variability, reports indicate more than $560 million flowed into ETH‑linked funds in the past week, with BlackRock‑led products among the largest recipients after REX‑Osprey launched the first U.S. staking ETH ETF.
Ethereum price outlook
Market views remain sharply divided. Long‑term bulls such as Ted Pillows argue ETH is ultimately headed well above $10,000 this cycle, but they expect a corrective phase beforehand that could push prices down toward the $3,600–$3,800 area before any new all‑time highs.
$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
Technically, reclaiming the $4,083–$4,330 zone would alleviate bearish pressure and could set the stage for a move back toward $5,000. Conversely, failure to hold key support levels could expose downside targets near $3,162 and $2,874. The 200‑day EMA—located around $3,350—remains a structural defense level that many traders will watch closely.