- Inflows into Ethereum ETFs indicate smart-money buying despite short-term weakness.
- Whales are reducing holdings while mid-sized “sharks” increase accumulation.
- Large ETH liquidations have fed bearish sentiment.
Ethereum (ETH) stands at a critical juncture as price tests support near $3,800 following a sharp pullback from recent highs.
Analysts are now weighing technical damage against on-chain signals that point in different directions.
Ethereum price under bearish pressure
ETH recently slipped below $4,000 and is currently trading in the mid-$3,800s.
The 24-hour trading range shows intraday swings between $3,833.75 and $4,051.26, while market commentators identify $3,800–$3,850 as the immediate defensive band and $3,500–$3,400 as deeper liquidity zones if sellers push further.
Notably, Ethereum has moved below clustered 20, 50 and 100 EMAs, which now sit roughly between $4,083 and $4,238 and act as resistance levels.
Momentum indicators have weakened as well: the four‑hour relative strength index (RSI) is hovering near 29, signaling oversold conditions that often precede short relief rallies.
Whales trim positions while sharks accumulate
On-chain flow metrics reveal sizable exchange movements, including a recent spike of about $66.7 million routed into spot exchanges.
This transfer coincided with ETH dropping below $4,000 and suggests some holders are moving coins to exchanges to sell.
Large wallets holding more than 100,000 ETH have aggressively reduced positions, which many analysts interpret as increased selling by the biggest holders.
At the same time, mid-sized entities—addresses holding 10,000–100,000 ETH—are accumulating and taking a more visible role in ownership dynamics, as highlighted by market observer Joao Wedson.
The shift of supply from the largest wallets into a concentrated cluster of mid-size “sharks” has pushed the Gini coefficient higher after months of decline, emphasizing 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 these moves as a healthy redistribution, others see a double‑edged sword: the decline in one large class of sellers reduces a single source of heavy selling but increases concentration risk among fewer holders.
Liquidations dampen sentiment as ETFs show hefty inflows
The price correction has triggered heavy market liquidations, with roughly $409 million in long ETH positions wiped out.
ETH futures funding rates have also flashed negative recently, feeding short-term downward momentum.
Institutional flows, especially around Ethereum ETFs, present a mixed picture: some funds report large inflows while others experience notable outflows.
Significantly, last week over $560 million flowed into ETH-linked funds, with BlackRock-led products among the largest recipients, even as REX-Osprey launched the first U.S. Ether ETF.
Ethereum price outlook
Market views diverge sharply. Long-term bulls such as Ted Pillows argue ETH could ultimately climb well above $10,000 this cycle, while acknowledging a near-term retracement to roughly $3,600–$3,800.
$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 downside pressure and could open a path back toward $5,000.
Conversely, failure to hold key supports would expose lower bands near $3,162 and $2,874, while the 200‑day EMA sits as a structural defense around $3,350.