Pressure on Ethereum prices remained high this week due to increased ETF outflows and deteriorating sentiment in the crypto industry.
summary
- Ethereum price has formed a large bullish flag pattern.
- It is above its 200-day moving average, showing signs of a rebound.
- The supply of Ether tokens on exchanges has fallen to multi-year lows.
Ethereum (ETH) is trading at $3,900 at the time of writing, down more than 21% from its September high. Still, technical analysis suggests that the price could be ripe for a big rally soon.
Ethereum price chart analysis
The daily timeframe chart shows that the price of Ethereum has fallen over the past few months. Prices have fallen from an August high of $4,963 to the current $3,900.
The coin has fallen below the key support level of $4,087, which peaked on December 6th and December 24th last year. The price also fell below the 50-day exponential moving average.
On the positive side, Ethereum remains steady above its 200-day moving average of $3,570. The price is also forming bullish flag patterns, which often lead to strong bullish breakouts.
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After completing the flagpole, the price is currently in the descending channel of this pattern. The coin is also just above the major S/R pivot point at $3,750.
Therefore, the token will likely rebound within a few days, with the first target set at the weak stop-and-reverse point on the Murray Math Line tool. A break above that level could indicate further upside, with the final resistance level at $5,000.
ETH supply on exchanges is decreasing
One of the biggest drivers of Ethereum's price is strong demand from investors, despite recent ETF outflows. More than $14 billion has flowed into these funds since they were launched last July, according to the data. They currently hold approximately $26 billion worth of coins, or 5.56% of the market capitalization.
Another sign of Ethereum demand is that exchange balances have continued to decline this year. The foreign exchange balance has drastically decreased from 27 million in 2022 to 15.9 million currently. The decline in foreign exchange reserves indicates that investors are moving their coins into self-custody.
Exchanges' ETH reserves are decreasing dramatically.
We know what happens next. pic.twitter.com/Q6vjjSF180
— Gordon (@AltcoinGordon) October 21, 2025
Meanwhile, more investors are staking ETH coins. According to SkingRewards data, the staking market cap is $140 billion and the staking ratio is 30%.
The Ethereum network is doing well, especially in the stablecoin industry. Stablecoin supply increased by 1.35% over the past 30 days to $167 billion, with adjusted trading volume reaching $1 trillion.
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