Ethereum News Today: Ethereum's 6% Plunge: Profit-Taking or Prelude to Rebound?

Ether prices experienced a notable decline on October 7, 2025, as profit-taking activity among traders fueled a 6% drop in the second-largest cryptocurrency by market capitalization. According to Coinbase data via TradingView, Ethereum (ETH) fell to approximately $4,450 after reaching a peak of over $4,750 earlier in the week. This pullback followed a 20% rally from late September 25, with most top 10 cryptocurrencies also recording losses. Analysts attributed the decline to a combination of short-term profit realization and broader market sentiment shifts.

Tom Bruni, head of markets at Stocktwits, highlighted that the Ethereum pullback mirrored trends in traditional equities, where indexes had also struggled to sustain momentum after recent highs. Similarly, Tim Enneking of Psalion noted that the decline reflected a market-wide retracement after widespread gains, adding that Ethereum appeared to be forming a short-term bottom. Brian Huang of Glider pointed to a $4 billion Bitcoin transfer from a dormant wallet as a potential catalyst, with such movements often signaling selling pressure. Julio Moreno of CryptoQuant reinforced this view, citing a $1.7 billion decline in open interest in ether futures over 24 hours as evidence of traders exiting long positionsEther Prices Pull Back As Profit Taking Fuels Losses - Forbes^[1].

Technical indicators and market structure analysis further underscored the bearish pressure. On-chain data from Ultrasoundmoney revealed a surge in Ethereum's circulating supply, driven by reduced user activity and a slowing burn rate. This deflationary mechanism, which removes ETH from circulation through transaction fees, weakened as demand waned. Additionally, spot Ethereum ETFs recorded $389 million in outflows in October, the largest monthly outflow since March 2025, according to SosoValue. These outflows, coupled with declining On-Balance Volume (OBV) metrics, suggested weakening buyer participation and increased vulnerability for ETH's $4,000 support levelHow Far Will ETH Price Fall From $4,000 in October 2025?^[2].

Retail and institutional sentiment remained cautious. Bruni noted that retail investors were hesitant to commit capital ahead of earnings season, with macroeconomic risks-including Fed policy and global tensions-remaining key concerns. Institutional investors also retreated, with Ethereum-focused ETFs seeing sustained outflows. Meanwhile, Santiment's social volume analysis showed a surge in bearish keywords like "selling" and "profit-taking" since late August, coinciding with Ethereum's peak at $4,950. Glassnode data further confirmed a 85% drop in ETH spot trading volume since mid-August, reflecting diminished conviction among tradersETH price to $3.5K first? Why Ether bears are growing louder^[3].

Despite the near-term weakness, analysts identified potential catalysts for a rebound. Enneking suggested Ethereum could test new all-time highs soon, while CryptoQuant's Moreno emphasized that profit-taking was a short-term phenomenon. Technical patterns, including a symmetrical triangle breakdown on the daily chart, pointed to a possible decline to $3,600 if the $4,280 support level failed. However, stabilizing Cumulative Volume Delta (CVD) metrics and institutional ETF inflows could counterbalance downward pressure. Michael van de Poppe of MN Capital proposed a potential rebound from the $3,500–$3,800 range if liquidity clusters at $3,600–$4,000 were absorbedEther ETFs Face Major Outflows as Price Drops 10% - CoinBuzzNow^[4].

The broader crypto ecosystem also reacted to Ethereum's volatility. A $3.9 billion Bitcoin transfer from dormant wallets on October 6 triggered a 4% correction in Bitcoin's price and $620 million in liquidations across the market. While Bitcoin's move was attributed to profit-taking by long-term holders, Ethereum's price action reflected spillover effects from the Bitcoin sell-off. Additionally, a $363.9 million Bitcoin-to-Ethereum transfer via Hyperunit reignited speculation about whale-driven rotations into ETH, historically preceding short-term ralliesWhale Awakening: $3.9 Billion Bitcoin Shift Triggers $620 Million Liquidations^[5].

Market observers remain divided on Ethereum's trajectory. While some predict a consolidation phase between $3,800 and $4,900, others anticipate a breakout above $5,000 as the altcoin rally gains momentum. The interplay between Ethereum's utility-driven fundamentals-such as DeFi and tokenization-and macroeconomic factors like ETF demand will likely determine its path. For now, traders are buying dips near $3,800 and selling peaks near $4,900, awaiting a catalyst to confirm the next phase of the cycleETH vs BTC: Analyzing Market Trends in 2025 - CoinBuzzNow^[6].