Ethereum Prices Drop Over 6% Amid Bearish Signals, Market Cap Slumps Billions

Ethereum's price has recently fallen below key support levels, trading around $4,168 to $4,172, marking a decline of over 3% to 6% and reaching its lowest since August. Technical indicators such as an RSI near oversold levels, bearish MACD divergence, and proximity to lower Bollinger Bands signal strong bearish momentum. Ethereum futures and derivatives data show increased selling pressure with a 15% drop in open interest and negative funding rates across major exchanges, indicating that short sellers currently dominate the market and that many long positions have been aggressively unwound. Analysts identify the $4,100–$4,000 range as a critical support zone where accumulation might occur, though failure to hold this level could lead to deeper corrections towards $3,600 to $3,800 or lower. Meanwhile, Ethereum co-founder Vitalik Buterin warns against overreliance on speculative trends such as meme coins and high-yield DeFi projects, emphasizing the need for organic and sustainable growth to ensure the network's long-term survival. This mix of bearish technical signals, cautious institutional outlooks, and fundamental concerns about the ecosystem underscores the uncertain near-term outlook for Ethereum.