Ethereum Price Prediction: ETH Struggles For Deeper Correction As Long Liquidations Hit 4-Month High
Ethereum (ETH) price saw renewed selling pressure on October 7, falling 5.67% to around $2,555 and dropping below the important $2,600 psychological level. The drop occurred against a backdrop of a swift increase in leveraged long liquidations, prompting analysts to warn of a more profound correction for ETH if key technical support levels are broken.# Ethereum Longs Hit Four-Month High
The report cited data from CoinGlass showing that on October 7, about $201 million in liquidations of Ethereum took place, the highest single-day ETH long liquidation total since June 5. The spike reflects increasing pressure on leveraged traders as ETH moved lower.
The rest of the cryptocurrency market also experienced notable volatility with overall liquidations reaching about $665 million. The largest single liquidation was a $26 million ETH/USDC position on Binance.
Ethereum’s derivatives market has also been hit by the long squeeze. The weighted funding rate for ETH fell to -0.0043%, the lowest since early September. Negative funding indicates a rise in the bearish stance as traders react to the recent price drop.
ETH Price Correction May Intensify, Analysts Warn
Ethereum’s short-term outlook is becoming more and more worrying for technical analysts. ETH is testing its 100-week exponential moving average (EMA) after falling below $2,600, said analyst Ted Pillows. A weekly close below this level may increase the risk of a deeper correction.
Analyst Daan Crypto also observed that the latest 5% decline in ETH has pushed it below its two- to three-week trading range. A rise in open interest as the ETH price falls may be a signal of continued selling pressure, and may extend the ongoing downtrend, the analysis noted.# Ethereum ETF Outflows Press Down on Market
Ethereum’s bearish technical setup is coupled with a massive institutional fund outflow. Ethereum ETFs experienced roughly $201 million in outflows on October 6, the largest single-day outflow since mid-September, according to data from SoSoValue.
Ethereum ETFs have experienced approximately $252 million in outflows over the week, the highest weekly outflow since June 2026. On October 6, Bitcoin ETFs attracted inflows of around $118 million, compared to other major assets, XRP ETFs drew as much as $3.14 million.
ETH Price Prediction: 100 Week EMA Turns Into Key Support
From a technical point of view, Ethereum’s 100-week EMA around $2,561 is a critical level for the current ETH price prediction. Bears are testing this support zone at this time with ETH trading near $2,555.
Examining historical price action, break below the 100-week EMA has caused major falls in the past. If ETH closes below this level on a weekly basis, the cryptocurrency could first target $2,400 and then possible support near $2,100.
But the bearish scenario may get a blow if the buyers regain control. A recovery above $2,600 might give ETH momentum to retest the resistance zone at $2,800. Therefore, the $2,561–$2,600 area continues to be important in deciding Ethereum’s next major price direction.
