Ethereum's price dropped sharply on October 14, falling more than 6.5% and breaking below the $4,000 level. This decline was fueled by weakened risk sentiment due to geopolitical tensions between the United States and China, alongside significant market liquidations. Data from CoinGlass revealed $145 million in Ethereum liquidations within 24 hours, the highest since the prior week when over $3.8 billion in positions were closed across the crypto market.
Institutional outflows exacerbated the sell-off, with spot Ethereum ETFs recording $428 million in withdrawals on Monday alone, the largest daily outflow since August. BlackRock's iShares Ethereum Trust led the redemptions with $310 million in outflows, while other major funds like Grayscale and Fidelity also saw substantial withdrawals. This reduced institutional participation has added to downward pressure, with ETH trading near $3,986, below the Super Trend resistance at $4,561.
Despite the bearish conditions, analysts like Michael van de Poppe maintain a positive outlook, suggesting Ethereum is nearing a rebound zone. He emphasized that "the coin just needs a higher low" for a sustained recovery. Technical analysis indicates a bullish flag pattern on weekly charts, with potential resistance at $5,000 and $6,250 if upward momentum resumes. However, if selling persists, key support levels are identified at $3,626 and $3,215, with a break below $3,425 potentially invalidating the bullish scenario.
