Ethereum Slips Toward $4,040 As Bearish Momentum Builds

Summary Ethereum trades near $4,040 after breaking below key support ￰0￱ at 26.9 signals oversold conditions, but bearish momentum still ￰1￱ outflows of $159.5M suggest accumulation, though near-term sentiment remains ￰2￱ Jainam Mehta ​Ethereum (ETH-USD) extended its decline on Thursday, trading near $4,040 after breaking through multiple support levels in a sharp ￰3￱ downturn highlights how technical weakness, cautious sentiment, and risk-off flows across broader markets have combined to weigh on the world’s second-largest ￰4￱ 4-hour chart shows ETH falling out of its descending channel that has capped price since ￰5￱ drop through $4,180 and $4,100 pushed price briefly to the $4,000 handle before a modest ￰6￱ resistance now sits at $4,100–$4,180, where former support has flipped into ￰7￱ ETH reclaims this zone, momentum remains tilted ￰8￱ Price Dynamics () RSI at 26.9 indicates heavily oversold conditions, underscoring the intensity of recent ￰9￱ this leaves scope for a short-term relief rally, upside may struggle to extend beyond the 20-EMA near $4,179 without stronger buying ￰10￱ the downside, failure to hold $4,000 risks exposing the $3,900–$3,850 cluster, a critical support zone for traders.

On-chain flows show heavy withdrawals Exchange data from September 25 recorded net outflows of $159.5 million in ETH, signaling strong withdrawals from ￰11￱ outflows often suggest investors are shifting tokens to long-term storage, reducing immediate selling pressure. However, the simultaneous price decline shows that confidence has not fully returned, with broader market caution limiting upside ￰12￱ divergence—large withdrawals alongside falling price—points to accumulation by longer-term holders even as short-term sentiment remains ￰13￱ has thinned during the sell-off, leaving Ethereum vulnerable to further volatility in the near ￰14￱ pressures reinforce caution Ethereum’s decline comes against a backdrop of global macro ￰15￱ questions around ￰16￱ policy, combined with rising risk aversion across equities and crypto, have weighed heavily on digital ￰17￱ move is also consistent with a broad correction across major altcoins, underscoring that the pressure is market-wide rather than isolated to ￰18￱ near-term weakness, Ethereum’s longer-term narrative remains ￰19￱ upgrades continue to improve network efficiency, while institutional interest through ETF-related developments highlights persistent ￰20￱ factors suggest that while the immediate trend is under strain, structural drivers of growth remain in ￰21￱ Ethereum’s near-term trajectory depends on its ability to defend the $4,000 level.

A rebound supported by oversold RSI could stabilize price, but a decisive reclaim of $4,180 will be needed to re-establish ￰22￱ to hold above $4,000 risks triggering a deeper move toward $3,850. Previously, we discussed how Ethereum was approaching a fragile technical phase , with the $4,180 cluster serving as critical ￰23￱ outlook now shifts, as the level has flipped into resistance and the market is testing $4,000 for ￰24￱ will be watching whether oversold conditions invite stronger bids or if bearish momentum extends into the upper $3,800s. This material may contain third-party opinions; none of the data and information on this webpage constitutes investment advice according to our ￰25￱ we adhere to strict Editorial Integrity , this post may contain references to products from our ￰26￱ Post