Crypto markets experienced notable volatility on Tuesday as Ethereum (ETH) faced a sharp correction, dropping over 8%. Despite this dip, analysts remain cautiously optimistic, viewing the move as a technical pullback within a broader upward trend that could set ETH on course for a new rally toward $10,000. As traders digest Ethereum’s latest price action, key support levels and technical patterns are being closely monitored for signs of a continued uptrend.
- •Ethereum’s price plunged by more than 8%, triggering approximately $115 million in long liquidations.
- •The formation of a bullish flag pattern suggests a potential move toward $10,000, provided crucial support levels hold.
- •Despite recent corrections, technical indicators hint at a possible breakout, with Ethereum targeting significant gains in the coming months.
Ethereum (ETH) saw its price descend from Monday’s highs above $4,300 to a low of $3,940 on Tuesday. While the correction weighed on traders’ spirits, confidence remains that ETH’s long‑term trajectory is upward, contingent on the ecosystem retaining key support levels.
Ether Wipes Out $115 Million in Long Positions
The decline was accompanied by widespread liquidations across the crypto space.
Data from CoinGlass indicates over $650 million worth of leveraged crypto positions were liquidated in the past 24 hours, with $455 million stemming from long positions.
Related: BitMine boosts ETH supply by 200K amid aggressive post‑crash buying
Specifically, liquidations of long ETH positions totaled approximately $114.5 million, a figure that continues to grow as the market reacts to recent price drops.
The largest liquidation order involved an ETH/USD position worth $5.5 million on OKX, highlighting the scale of leveraged traders caught off guard by ETH’s decline below $4,000.
The CoinGlass liquidation heatmap revealed several buy orders below the current price, particularly between $3,670 and $3,800, indicating that strong support could limit further downside.
Market Outlook: Is the Downtrend Over?
Some analysts see the recent correction as a necessary retest of support before a renewed rally. MN Capital founder Michael van de Poppe noted that ETH/BTC pair’s drop to 0.032 was an ideal entry point for buyers.
“ETH hit an ideal zone for buys and looks poised for a trend reversal,” van de Poppe stated on social media, adding, “A higher low would set the stage for new highs.”
Meanwhile, Daan Crypto Trades pointed out that although the ETH/BTC pair has held support at 0.032, a breakout above 0.041 is needed to confirm a sustained uptrend.
On the USD side, the relative strength index (RSI) broke out of a multi‑year downtrend, suggesting that a bullish move could be imminent. If historical patterns repeat, Ethereum’s price could surge toward $8,000–$10,300, based on Fibonacci extension levels.
“#ETH breakout is loading,”
#ETH breakout is loading…
And it could melt faces pic.twitter.com/PPT2MXHd4H
— Titan of Crypto (@Washigorira) October 13, 2025
On the downside, Ethereum could find support around $3,800, as suggested by analyst Chimp of the North. His chart indicates a potential retest of this level before a possible rally past $5,000. The recent stabilization in Ethereum futures markets hints at an imminent bounce back, with some forecasts projecting Ethereum returning to $4,500 over the next few days after Friday’s crypto flash crash.
Technical Patterns Point Toward a Bullish Breakout
Ether’s price continues to trade within a prominent bull flag pattern on the weekly chart, a sign of consolidation after a sharp rally and a potential precursor to further gains.
The immediate support is at $3,870, with the upper boundary around $4,440. A break above this resistance could propel ETH toward a target of approximately $10,050 — representing a 164 % increase from current levels.
The RSI has cooled from 74 to 54, suggesting that while the correction may persist in the short term, a strong bullish move remains feasible. A daily close below $3,800 could signal further declines toward the 20‑week SMA at $3,700 and potentially as low as $3,500.
This analysis is not investment advice. Cryptocurrency trading involves risk, and individuals should conduct thorough research before acting on market moves.