Ethereum Breaks $4K Support After Flashing Bearish Signal – Is ETH in Big Trouble?

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Well, well, well, Ethereum (ETH) is throwing us a little warning party! That’s right, the trusty Moving Average Convergence Divergence (MACD) indicator has flashed a big, red, warning light. And guess what? This flashy little thing has a history of predicting a serious price drop. We’re talking about ETH falling anywhere from 46% to 60% in previous market tantrums. Fun times ahead, eh? 😱

The MACD, a lovely little momentum gauge, has officially crossed into negative territory. If you’ve been living under a rock (or maybe just not checking crypto charts), the last two times this happened, mid-2024 and early 2025, Ethereum was sent plummeting into the abyss-losing half its value in mere weeks. But hey, what’s a 50% loss between friends? 😬

Crypto Trader Koala (yes, you read that right, a Koala) tweeted on X, “The last three times this cross turned red, ETH dropped hard. Not liking what I see here.” Well, no one asked you, Koala, but we appreciate the warning. 🙄

$ETH

This is a weekly breakdown and trend loss.

This is not bullish chop (that is cope from the bulls)

We will likely see downward acceleration sooner than later.

Weekly range low deviation?

Maybe.

But I wouldn’t bet on that.

– Trader Koala (@trader_koala) October 16, 2025

The “Titan of Crypto” (we’re not sure who this is, but sounds ominous) says traders should “prepare for any scenario” as the bearish signal becomes official. Meanwhile, Mr. Man of Bitcoin (because, of course, that’s a thing) is holding on to hope. He says if ETH can hang on above the $3,899 support, maybe, just maybe, we’ll see a bounce. Break that level though? Get ready for a deep dive, my friends.

$ETH: As long as the price holds above the $3,899 support level, a direct move to the upside in wave-3 remains possible. A break below this level would suggest that a larger ABC correction in wave-2 is unfolding.

– Man of Bitcoin (@Manofbitcoin) October 16, 2025

Bulls eye key support at $4,000 besides drop

Ethereum’s price is hanging on by a thread around $3,900, just above the oh-so-important $4,000 support level. You know, the same zone where Ethereum collapsed in 2022 from $4,000 to a pitiful $880. Fun times. Once again, that sweet $4,000 support is the battleground after $115 million worth of long liquidations sent ETH hurtling below the mark. Oops, right?

While traders are getting all sweaty about this drop, analysts are throwing in their two cents. They’re like, “If ETH holds above $3,800, we might still be on track for an epic comeback, bringing us to the moon!” (Or something like that). But hold your horses, because if ETH slips further, it might just be the beginning of another crypto winter. Brrr. 🥶

The market is in a tight spot-Ethereum is trying to maintain its bullish vibes, but those pesky technical weaknesses are creeping up like an annoying ex. And with more futures leverage coming in and macro volatility spiking, traders can’t decide if this correction is just a little pit stop or the start of a full-blown market crash. Stay tuned, folks! 🎢

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2025-10-16 22:30