Ethereum (ETH) is currently trading around $2,617 after a notable drop that saw it dip below the $2,600 threshold. This decline comes on the heels of a generally stable week, where the price fluctuated between $2,650 and $2,750.
The recent price movement coincided with the launch of Ethereum’s Glamsterdam upgrade on the Sepolia testnet, a crucial milestone before it transitions to the mainnet. This upgrade merges two separate enhancements, Amsterdam and Gloas, and introduces 18 core proposals alongside 7 supporting ones, aimed at refining the network’s handling of blocks and data.
One of the most significant changes is the gas limit increase from 60 million to 200 million, allowing the network to process a higher volume of transactions and more complex computations per block. Ethereum co-founder Vitalik Buterin, speaking at the OKX NOW event, emphasized the growing reliance on AI for on-chain applications over the next two years, indicating that automated systems will increasingly manage front-end interactions.
Price Action and Liquidations
The recent price drop triggered a wave of forced selling across the market. Analyst accounts reported that ETH’s downturn below $2,600 coincided with the liquidation of over $400 million in long positions within just 20 minutes. Data from Coinglass indicated that $15.3 million in ETH positions were liquidated over the past 24 hours, with $10.5 million attributed to long positions. Despite this volatility, ETH remains above its 20-, 50-, and 100-day moving averages, suggesting a degree of underlying demand.
Current resistance levels are observed near $2,781, followed by $3,075 and $3,260. Meanwhile, support is identified around the 20-day average near $2,656, with additional levels at $2,631, $2,558, and the 50-day average at $2,500.
ETF Outflows and On-Chain Data
In the realm of institutional investments, Ethereum ETFs have recorded six consecutive days of net outflows, totaling $207 million. This marks the longest streak of outflows since June, as investors seem to be cashing in on profits following ETH’s recent upward movement from $2,400 to $2,800.
Despite the outflows, Ethereum’s Market Value to Realized Value (MVRV) Ratio has risen from 1.4% to 3.5%, indicating that the average cost basis of ETH holders remains positive. Analysts have drawn parallels between the current market conditions and those observed in April-May 2025, when ETH hit a low near $1,400 before embarking on a significant rally after the Pectra upgrade. They suggest that a similar pattern could unfold if the $2,400 support level holds firm.
The Relative Strength Index (RSI) for ETH is positioned above 50, suggesting a bullish sentiment that could facilitate a move towards $3,400 should buyers re-enter the market. As of 06:37 UTC on October 7, ETH was recorded at $2,617.71, reflecting a 2.98% decline on the day.
