Ethereum broke down from its two-week trading range and is now testing $2,565 as its next key support after heavy selling volume. A loss of that level would expose $2,500 and then $2,380–$2,400, while holding it keeps a recovery toward $2,625–$2,650 in play.
Ethereum broke out of its two-week trading band, with the short-term trend now favoring sellers. The coin had climbed from a low of $2,380 to nearly $2,810, creating a new floor at $2,625–$2,650 with each subsequent high.
That uptrend structure broke on October 7, when large volumes sold off Ethereum through both support levels. ETH fell further before finding brief footing at $2,535, then again at $2,559 — a level that served as the starting point for the advance on September 20.
The decline deepened after BitMine chairman Tom Lee said the firm will stop open-market ETH purchases once it reaches a 5% cap of circulating supply, adding that BitMine needs only 100,000 more ETH to hit that target. Breakdown volume reached its highest point of the entire trading range, confirming increased selling pressure.
If Ethereum holds $2,565, there is potential for a recovery back to $2,625–$2,650. However, losing the level would expose $2,500, followed by $2,380–$2,400, weakening the broader recovery and increasing pressure on buyers.
Ethereum ETF outflows deepen
Bitcoin's ETF demand outpaced Ethereum's as the breakdown unfolded. On October 6, BlackRock's ETHA recorded $201.89 million in outflows, while its Bitcoin counterpart, IBIT, attracted $122 million. Across the broader market, Bitcoin ETFs gained $119 million while Ethereum ETFs lost $201.89 million.
Institutional demand therefore favored Bitcoin despite a risk-off environment across the broader market. As a result, Ethereum now depends on stronger ETF flows to stabilize demand for the altcoin.
AI raises new security risks for Ethereum
Beyond ETF demand, Ethereum faces a new security question as AI accelerates mathematical research and attack capabilities. Ethereum Foundation researcher Justin Drake warned that AI could weaken ECDSA sooner than expected.
Ethereum co-founder Vitalik Buterin acknowledged the risk while cautioning users against panic-driven migrations, since rushed wallet moves can create new security risks of their own. Meanwhile, Ethereum's security teams are using AI to test protocol code, a process that disclosed one issue, CVE-2026-34219.
Attackers are also using AI to scan unverified contracts more efficiently. Better audits, safer wallet practices, and measured migration could limit future risks as the technology advances on both sides.
Source: AMBCrypto
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