Rongchai Wang
October 11, 2025 6:42 am
Ethereum crashes to $3,786 amid bearish technical signals and breaks below major moving averages with trading volume of $6.8 billion as selling pressure increases.
What happened
Ethereum saw a sharp decline of 12.90% today, falling to $3,785.93 after technical indicators showed warning signs across the board. The sell-off pushed ETH below critical support levels, triggering a cascade of liquidations and algorithmic selling that intensified throughout the trading session.
The details
The ETH price breakdown began when the token failed to hold above its 20-day moving average of $4,246.57, and is now trading 10.8% below this key technical level. The decline accelerated as Ethereum broke the psychological support at $4,000, with the token eventually hitting a low of nearly $3,435.00 during the session.
Trading volume rose to $6.87 billion on Binance’s spot markets alone, indicating significant participation from institutional and retail investors in the sell-off. The sharp price action represents one of the most significant single-day declines for ETH in recent weeks, with the token falling from session highs of $4,390.46 to current levels.
Technical response
The technical picture for Ethereum has deteriorated rapidly, with the Relative Strength Index falling to 34.8, approaching oversold territory but not yet signaling an immediate turnaround. The MACD indicator has turned decisively bearish with a histogram value of -51.26, confirming the momentum shift to the downside.
ETH is now trading 13.5% below its 50-day moving average at $4,377.82, a level that previously provided strong support during recent corrections. However, the token maintains a 21.9% premium to its 200-day moving average of $3,105.75, indicating that the longer-term uptrend remains intact despite today’s volatility.
Key resistance levels have formed at $4,755.00 and $4,956.78, while immediate support appears at the session low at $3,435.00. The pivot point at $3,870.46 will be crucial in determining the near-term price.
What traders do
Market participants appear to be reducing their positions as technical levels fail to hold. The increased volume signals both institutional profit-taking and retail capitulation, with automated trading systems likely contributing to the downward pressure as stop-losses occur.
Options market activity indicates increased demand for downside protection, while futures markets are seeing higher funding rates as short positions accumulate. The ETH/USDT pair has become the focus of significant algorithmic trading activity as price discovery continues at lower levels.
What’s next
Immediate attention turns to whether ETH can regain the $4,000 level and stabilize above the $3,870 pivot point. A sustained break below $3,435 could open the door for further declines towards the $3,100 region, where the 200-day moving average offers potential support.
Recovery scenarios depend on ETH regaining momentum above $4,200, which should coincide with reduced selling pressure and improved risk sentiment. The resistance level at $4,755 represents a significant hurdle for any potential bounce attempt.
The takeaway
Ethereum’s technical breakdown below the major moving averages signals further downside risk, with traders advised to monitor the $3,435 support level for signs of stabilization or continued deterioration.
For the latest ETH price updates and Ethereum analysis, keep an eye on the key support and resistance levels mentioned above.
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