Ethereum News: What is Behind the 24h Drop of 3.54% for ETH?

Key Takeaways:Ethereum price falls 3.54% to $4,410, underperforming the broader crypto market (-2.32%).$60B wiped from crypto market in 1 hour, dragging ETH below key resistance.ETH faces rejection at $4,542 Fibonacci level, raising correction risks.ETF-driven rally fades as traders take profits and whale activity stabilizes. Ethereum Price Falls to $4,410 Amid Market-Wide Liquidations and Resistance RejectionEthereum price dropped 3.13% in the past 24 hours, falling to $4,410, as the broader crypto market faced sharp selling pressure. The move marks a pullback from last week’s 10% rally, with ETH underperforming major peers amid a $60 billion crypto market wipeout and failure to break through key technical resistance at $4,542. $60B Crypto Sell-Off Sparks ETH SlideA broad market liquidation event on October 7 erased nearly $60 billion in crypto value within an hour, dragging ETH price lower alongside Bitcoin, which dropped 1.6%. This flash correction signals a risk-off shift across digital assets.Ethereum's 90-day correlation with Bitcoin remains high at 0.94, amplifying BTC-led selloffs. Technical Rejection at $4,542 Triggers Cooling MomentumEthereum faced rejection at the 23.6% Fibonacci retracement level at $4,542.85, capping the rally that was fueled by spot ETF optimism and the upcoming Fusaka upgrade.The 7-day RSI has cooled to 63.36, down from 75.32 last week, showing reduced bullish momentum.Source: CoinMarketCapDespite this, the MACD histogram remains positive at +52.11, indicating a possible consolidation phase between $4,400–$4,600.A close below $4,400—aligned with the 100-day SMA—could open room for a pullback toward $4,185, the 38.2% Fibonacci level. Profit-Taking After ETF Rally Adds Selling PressureFollowing last week’s 10% surge, investors are now engaging in profit-taking, especially near the 2025 high of $4,763. The rally was initially driven by $176.6 million in spot ETF inflows on October 6, but that tailwind is fading.Grayscale’s $150M ETH staking allocation signals ongoing institutional interest, but it wasn’t enough to offset retail selling.Exchange net position change turned less negative, from –2.3M to –1.5M ETH between Sept 22 and Oct 6, reflecting reduced accumulation and rising selling pressure.Still, whale wallets remain steady, growing from 99.16M to 99.26M ETH (~$470M increase), according to Santiment—a slow but meaningful sign of high-conviction holding. Chart Patterns Suggest Temporary Dip Before Possible BreakoutDespite the near-term drop, Ethereum price continues to trade within a bullish inverse head-and-shoulders pattern, a structure often seen before upward breakouts.ETH may dip to $4,410 to complete the “right shoulder” before rebounding toward the $4,740 neckline.A confirmed close above $4,740 could pave the way to $4,950 or potentially new all-time highs.A more bearish outcome emerges only if ETH breaks below $4,270, which would delay the bullish setup. Outlook: ETH’s Uptrend Intact but Eyes on $4,400 SupportEthereum’s broader uptrend remains intact despite the short-term dip. However, failure to hold $4,400 support could open the door for further declines toward $4,200, a key demand zone aligning with both technical and on-chain indicators.To maintain upward momentum, Ethereum must overcome rejection at $4,542 and show sustained ETF inflows and on-chain activity. Notably, the number of active addresses has declined slightly, suggesting a possible disconnect between price and usage.If this pattern continues, bullish confidence could waver near the $4,700–$4,800 resistance zone. Still, as long as whales accumulate and macro conditions remain favorable, Ethereum could be setting up for its next move higher.