ETH Price in a “Classic Bear Trap” Under $4,000 Says Expert, While Ethereum ETF Flows Turn Negative

Core Insights - The crypto market experienced a "sell-the-news" reaction following the FOMC meeting and Fed rate cut announcement on October 29, leading to a decline in Ethereum price [1] - Ethereum has lost the critical $4,000 support level, dropping 3% in the last 24 hours, with analysts suggesting this could be a classic bear trap [2][3] - Spot Ethereum ETF flows have turned negative, with a total outflow of $84 million on October 29, indicating a shift in market sentiment [5] Price Movement - Ethereum price fell below the $4,000 support level, with a 3% decline noted today [2] - The futures open interest for Ethereum decreased by 2.7% to $46 billion, reflecting bearish sentiment in the market [2] - Analysts warn that if Ethereum continues to decline below $4,000, it could potentially drop to around $2,200 [4] Macroeconomic Context - Recent macro developments include a 25 basis points Fed rate cut, the end of quantitative tightening, and renewed U.S.-China trade talks, which were expected to positively influence market sentiment [3] - Despite these developments, the crypto market has not reacted favorably, leading analysts to consider the possibility of a significant downturn [3] ETF Flow Analysis - The U.S. spot Ethereum ETFs saw negative flows after initial strong inflows, with Fidelity's FETH contributing the most at $69.5 million in outflows [5] - BlackRock's ETHA was an exception, experiencing positive inflows of $21.4 million, indicating varied investor sentiment across different funds [5]