Key takeaways:

• Withering Spot Buys and Rising Ethereum Price ETF Outflows Signal Feeble Demand Risks Further Losses for Ether.

• The Ether bear flag predicts a 20% price drop to $3,100.

Ether (ETH) fell to $3,800 on Tuesday, failing to hold $4,000, as Ethereum ETF spot investors continued net redemptions. This occurred as the technical setup indicated a deeper correction in the ETH price.

Ether price is facing “strong resistance” at $4,000

Ether’s 16% rebound from the low of $3,500 reached on October 11 was halted by selling near the psychological barrier of $4,000.

This showed that “there is strong resistance at $4,000” he said trader Philakone in post X on Monday.

Related: BitMine’s Lee says Ether’s “price shift” is a buying signal

Please note that the last time ETH/USD was rejected from this zone was in December 2024, before the price dropped 66% as shown in the chart below.

Bulls therefore need to push and sustain the price above $4,000 to ensure recovery.

“This was a difficult level for bulls to break and is quite critical in the short and medium term,” he added. he said Daan Crypto Trades analyst in a recent post on X.

A decisive daily candle close above this level will result in ETH “returning to its previous price range and leaving these lows behind,” the analyst wrote, adding:

“It will be an interesting fight at ~$4.1K.”

This level “determines whether this pullback will become a deeper correction or a low reset, he said another analyst, Jas Crypto, adds:

“If the bulls defend $4,000, momentum may recover towards $5,000.”

As Cointelegraph reports, bulls will need to push the Ether price above the $4,000-$4,300 supply zone to signal the beginning of a new uptrend.

The lack of new buyers keeps ETH below $4,000

Ether’s ability to stay above $4,000 appears limited for now due to a lack of buyers.

Spot volume delta, a metric that measures the net difference between buying and selling volume, shows that net spot purchases on exchanges remain negative despite recent recovery efforts.

This suggests that the price rebound may lack the momentum from sustained buying pressure, which could lead to a deeper pullback.

Without real demand, any breakout attempt may lack the strength required to push ETH above key levels.

Demand for spot Ethereum ETFs is also falling, and these investment products have seen outflows for six of the last eight days, SoSoValue data showed.

On Monday alone, Ether ETFs lost $145.7 million, bringing total net outflows over the past eight days to $640.5 million.

ETF flows need to return and new ETH buyers need to step in for the bulls to have a chance to get back to $5,000.

The Ether bear flag split is expected to be $3,100

ETH price is expected to revert to the prevailing bearish trend after confirming the classic bearish pattern.

Ether’s price action over the last 14 days has led to a bear flag pattern on the 12-hour chart, as shown in the figure below. On Tuesday, the price dropped below the $4,000 flag low, signaling the beginning of a significant collapse.

The target price as measured by the flagpole is approximately $3,120, which is approximately a 20% decrease from the current price.

The Relative Strength Index is still below 50, suggesting market conditions remain bearish.

Despite this bearish outlook, investors remain optimistic about Ether’s growth potential, citing bullish signals from credit conditions and continued purchases by Ethereum treasuries.

Analyst Jelle said Ether is currently retesting a key breakout level around $4,000 before resuming its uptrend.

“It looks very ready to quickly expand higher.”

Judging by the sentiment about CT, you’d think $ETH he was in the gutter – but he just holds the escape area as support.

This looks very ready for rapid expansion higher.

Shakeouts seem to be working. pic.twitter.com/IUpfnpf5VQ

— Jelle (@CryptoJelleNL) October 15, 2025

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.