Ethereum ran into resistance at $4,000 as dwindling spot buying and weak spot Ethereum ETF flows threaten to push the price down to $3,100.

Key Highlights:

• The decrease in spot buying and increasing outflows from spot Ethereum ETFs indicate weakness in demand, putting Ether at risk.
• Ether’s price may plummet by 20% to $3,100 as per current patterns.

Ether’s price recently dipped to $3,800 on Tuesday, unable to maintain its position past $4,000 with spot Ethereum ETF investors opting for net redemptions. This situation suggests a deeper price correction may be imminent.

Ether Faces Significant Resistance at $4,000

Ether experienced a 16% recovery from a $3,500 low reached on October 11, but selling activity around the psychological barrier of $4,000 curtailed this rise. This shows that there is considerable resistance at this level, said trader Philakone in an X post on Monday.

“This has been a hard level to break for the bulls and is pretty critical in the short/mid term going forward,” noted analyst Daan Crypto Trades in a recent X post.

A decisive daily candlestick close above this zone could indicate the return of previous price levels, but without sustained buying, the struggle may limit recovery opportunities.

Lack of new buyers prevents ETH from surpassing $4,000 effectively, diminishing prospects of significant price rebounds. The overall market conditions favor bearish trends and this outlook continues to be echoed by analysts.

ETH/USD
ETH/USD daily chart. Source: Cointelegraph/

Market sentiment and a battle to maintain momentum around upcoming price levels are likely to dictate ETH’s trajectory moving forward.