Key Takeaways

ETH remains rangebound between $4,200 and $4,500 for two weeks.

Spot trading volume has dropped 85% since late August, signaling weak demand.

Institutional flows turn negative, with ETH ETFs seeing over $1B in outflows.

Analysts warn ETH could retest $3,500–$3,800 before recovering.

Ethereum Market Sentiment Turns Negative

Ethereum (ETH) price has struggled to break out of the $4,200–$4,500 range, prompting growing bearish calls from traders. According to Santiment, market sentiment has shifted sharply negative, with keywords like “selling” and “bearish” surging since ETH’s $4,950 all-time high in late August.



“Traders have changed their tunes, swinging more negatively with expectations of Bitcoin falling back below $100K, Ethereum back below $3.5K,” Santiment noted. Ironically, the firm added that such extreme bearish sentiment can sometimes signal an ideal buy opportunity.

Spot and Institutional Demand Weakens

Ethereum’s spot demand has cooled significantly:

Spot trading volume fell to $2.6B on Sept. 8, down from $18.5B on Aug. 22 (–85%), per Glassnode.



Cumulative Volume Delta (CVD) has improved slightly but remains well below late August levels.

ETH ETFs recorded $1.04B in outflows across six straight sessions, signaling that institutional investors are stepping back.

Together, these indicators highlight waning participation and conviction among traders.



ETH Technical Levels to Watch

ETH is testing the lower trendline of a symmetrical triangle at $4,280 on the daily chart. A close below this level could invite more bearish pressure:

Downside targets: $3,745 (intermediate support), $3,600–$3,800 (liquidity clusters), and $3,500 (demand zone).

Analyst views:

Michael van de Poppe (MN Capital): ETH may dip to $3,500–$3,800 before rebounding.

Ted Pillows: A sweep of lower liquidity near $3,600–$4,000 may occur before reversal.



Market Outlook

For now, Ethereum remains in a fragile technical setup, with low spot activity and ETF outflows amplifying sell pressure. Bulls will need to defend $4,000–$4,200 to avoid a deeper correction toward $3,500.

If support holds, a rebound could set the stage for ETH to re-enter its broader uptrend, according to Cointelegraph.