Ethereum News Today: Whale Sales and Regulations Test Ethereum's $3.7k Support Threshold

Ethereum (ETH) faces mounting pressure as its price retreated below critical support levels, sparking warnings from analysts that a potential decline to $3,700 could materialize if key technical barriers fail. As of October 11, 2025, ETH traded at $3,823, having fallen 12% in a single day amid a broader crypto market slump. The total market capitalization dipped to $3.7 trillion, reflecting widespread caution among investors driven by macroeconomic concerns and regulatory uncertainties The Coin Republic^[1].

A significant factor contributing to the downward trend is the offloading of large ETH holdings by whales. Over the past week, a single whale deposited 14,275 ETH ($62.5 million) into Binance, with cumulative sales since March 2025 reaching 23,365 ETH ($97.6 million). This activity, coupled with a $237 million ETH transfer by another major holder to exchanges, has amplified short-term selling pressure. Whale activity has historically signaled bearish momentum, with some analysts noting that such large-scale liquidations could deepen corrections The Coin Republic^[1].

Technical analysis highlights the importance of the $3,700–$3,725 support zone. If this level fails to hold, ETH could slide toward $3,523 or even $3,400, according to bearish scenarios. The Relative Strength Index (RSI) at 44 suggests an oversold condition, hinting at potential recovery, but the broader trend remains bearish below $4,000. Analysts like Ali Martinez and Ash Crypto have emphasized that a sustained break below $3,700 could trigger a 12–25% price drop, targeting $3,860 or $1,600, depending on the severity of the breakdown The Coin Republic^[1].

Market dynamics are further complicated by the expiration of $930 million in Ethereum options, which historically drives volatility. The Federal Reserve's lack of clarity on rate-cut plans has also dampened investor sentiment, with some institutional interest waning. U.S. spot ETH ETFs recorded an outflow of $8.7 million on October 9, marking the end of an eight-day inflow streak. Meanwhile, stablecoin inflows of $3 billion into Ethereum over the past week underscore its structural dominance, though this does not offset immediate bearish pressures The Coin Republic^[1]Coin Edition^[2]Coin Gabbar^[3].

Regulatory risks, particularly the U.S. Senate's DeFi proposal, have added to the uncertainty. While the bill does not explicitly target Ethereum, its requirement for brokers to register with the SEC or CFTC could impact Ethereum-based protocols like Uniswap and Aave. Analysts warn that such rules might drive developers offshore and reduce liquidity in the short term Coin Edition^[2].

Despite the near-term challenges, some analysts remain cautiously optimistic. If Ethereum holds the $3,725–$3,573 support band and reclaims $4,000, the broader uptrend could resume. However, the path to recovery depends on resolving key technical levels and stabilizing investor confidence. For now, the market remains in a critical phase, with outcomes hinging on whether buyers defend the bull market support or sellers push ETH into a deeper correction Coin Edition^[2]Coindotag^[4].