Key Insights:
- Ethereum retests $4,060 support twice in three days, raising concern over downside pressure.
- Ethereum ETFs recorded $140M outflows led by Fidelity and Grayscale, while BlackRock held steady.
- Traders watch $3,800 as key support if $4,060 breaks, with upside capped at $4,883
Ethereum traded at $4,177.60 on Tuesday, recording a 0.44% daily decline and a 7% weekly loss. Over the past three days, the asset has retested the $4,060 support level twice, raising questions about whether the level can hold.
Analyst Ted noted, “$ETH tapped the $4,060 support level again. This is the 2nd retest in just 3 days, and it seems like Ethereum wants to go lower.” If the level breaks, the next support sits near $3,800–$3,850, which some view as a potential accumulation zone. On the upside, Ethereum would need to clear $4,265 and $4,493 to confirm early strength, with $4,883 as the next resistance.
ETF Outflows Add Pressure
Market flows continue to show weakness in institutional demand. According to SoSoValue, Ethereum ETFs recorded a combined net outflow of $140.75 million on September 23. Fidelity’s FETH led with $63.4 million in withdrawals, followed by Grayscale’s ETH and ETHE products, which saw $36.37 million and $17.1 million in outflows.
Bitwise also reported $23.88 million in redemptions. These moves translated into tens of thousands of ETH leaving funds in a single session. BlackRock’s ETHA product reported no change, maintaining $13.38 billion in cumulative net inflows, the largest among issuers. Invesco’s QETH posted a small positive inflow.
Analyst BitBull remarked,
“Ethereum ETFs sold again yesterday… The good thing is BlackRock didn’t sell any, which often happens near the bottom.”
Source: BitBull/XScenarios for Traders
Ethereum futures charts show price consolidating after the drop, with clear support and resistance zones.
Analyst Lennaert Snyder stated,
Source: Lennaert Snyde/XResistance lies between $4,200 and $4,300, followed by $4,450–$4,500. Support remains at $4,060–$4,100, with breakdown opening targets at $3,850–$3,900 and deeper levels at $3,600–$3,700. These ranges provide the framework for short-term positioning, depending on how price reacts.
Ethereum’s price action, ETF flows, and futures setups all point to a cautious environment. Traders are closely monitoring the $4,060 and $3,800 levels as key areas of interest. While selling pressure remains visible through fund outflows and repeated support tests, holding these zones could define the next phase of Ethereum’s market structure.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Source: https://coincu.com/analysis/ethereum-retests-4060/
