Ethereum Price Prediction: Analyst Warns of Deeper Correction as ETH Sees Highest Long Liquidations Since June

Ethereum (ETH) price has dropped below $2,600 amid a surge in long liquidations to the highest level since June. Analysts are now warning of a steeper correction as ETH price tests a crucial support level after the recent dip.

Ethereum is down 5.67% today, October 7, to trade at $2,555 at the time of writing.

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Ethereum Long Liquidations Hit 4-Month High

Data from CoinGlass shows that there were $201 million in liquidations from the Ethereum market on October 7. This marks the highest single-day long liquidation by ETH since June 5.

The long liquidations mirror a downtrend across the broader crypto market, with Bitcoin (BTC) price also falling to below $84,000.

The downturn caused a total of $665 million in liquidations across the entire market, with the largest single liquidation order being an ETH/USDC position worth $26 million on Binance.

The ongoing long squeeze has pushed Ethereum’s weighted funding rate to -0.0043%, with this being the lowest funding rate reading since early September.

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Analysts Warn of a Deeper Correction in ETH Price

Analyst Ted Pillows on X notes that Ethereum price is now testing support at the 100-week EMA after falling below the psychological support of $2,600. He warns that Ethereum could head for a “deeper correction” if it closes below this EMA.

Analyst Daan Crypto also notes that Ethereum price has dropped below its 2-3 week range after the 5% decline today. The analyst notes that the breakdown suggests that the long-term Ethereum outlook remains bearish unless there is a significant move to the upside.

Analyst Daan adds that the downtrend may continue because of a surge in selling pressure. He also says that Ethereum’s open interest is rising despite the price decline, with this suggesting the downtrend may continue.

ETH ETF Outflows Surge

This bearish outlook by analysts coincides with rising outflows from Ethereum ETFs. Data from SoSoValue shows that there were $201 million in outflows from these ETFs on October 6, with this being the highest single-day outflow since mid-September.

Ethereum ETFs have also seen $252 million in outflows this week. The weekly outflow seen so far is the highest registered by the ETFs since June 2026.

In contrast, Bitcoin ETFs recorded $118 million in inflows on October 6, while XRP inflows also came in at $3.14 million.

Ethereum Price Prediction as Bears Test 100W EMA

The one-week chart for ETH value shows that bears are testing support at the 100W EMA of $2,561.

Past trends show that Ethereum price tumbled after closing below this EMA. In February 2025, a close below this EMA saw ETH drop from $2,800 to $1,500. A similar drop in January 2026 saw ETH fall from $3,200 to $1,700.

If ETH closes below the 100-week EMA, the price could move below $2,400 and test support at the midline of the FVG gap at $2,100.

However, if buyers return, ETH may reclaim the $2,600 price before targeting $2,800.