Ethereum price drops 8% to $3,940, but traders predict a potential ETH rally to $10,000 if key support levels hold.
Ethereum’s price has dropped by 8%, falling to $3,940, but traders remain optimistic.
Despite the recent correction, many analysts believe Ethereum is preparing for a breakout to new all-time highs, with $10,000 as the target. The current support level is crucial, and as long as it holds, Ethereum could be poised for a major rally.
Ethereum Price Faces Short-Term Correction
Ethereum price experienced a sharp 8% drop on Tuesday, which led to significant liquidations.
Over $650 million in leveraged positions were wiped out across the crypto market, with $114.5 million from Ethereum long positions. The drop in ETH’s price caught many traders by surprise, especially with the largest liquidation occurring on the OKX exchange for $5.5 million in ETH.
However, market analysts are not overly concerned. The correction is seen as a natural part of Ethereum’s price movement, with traders expecting it to test key support levels. Ethereum’s price is holding around $3,940, with critical support sitting near the $3,800 level.
The liquidation heatmap indicates strong buyer interest in this range, suggesting that the ongoing correction could soon find a floor.
Bull Flag Pattern Suggests $10K Target
Despite the drop, Ethereum continues to trade within a bullish technical setup known as a bull flag.
The pattern is formed when a strong price rise is followed by consolidation in a down-sloping range. Ethereum is now retesting the lower boundary of the flag, which currently sits around $3,870, serving as immediate support.
According to technical analysis, if Ethereum breaks above the upper trendline of the bull flag at $4,440, the price could continue its upward momentum.
#ETH breakout is loading…
And it could melt faces pic.twitter.com/PPT2MXHd4H
— Titan of Crypto (@Washigorira) October 13, 2025
The target from this pattern would be $10,050, a 164% increase from its current price. The continuation of the bull flag depends on Ethereum holding key support levels and breaking past the upper trendline.
Traders Expect Continued Uptrend
Traders are still confident in Ethereum’s long-term potential despite the short-term price drop.
Michael van de Poppe, founder of MN Capital, noted that the recent drop has placed Ethereum in an “ideal zone for buys.” He believes the correction will end soon, and a trend reversal could push ETH to new highs.
Further analysis from other traders, including Daan Crypto Trades and Titan of Crypto, suggests that Ethereum’s breakout could be imminent. The relative strength index (RSI) has broken out of a multi-year downtrend, signaling that the price could rise significantly if it maintains support.
Some traders even predict an upward movement to levels between $8,000 and $10,300 if the breakout plays out as expected.
$ETH Has been cooling off relative to $BTC after the massive run up the past few months.
I have not been very interested in the ETH/BTC ratio until it either broke above 0.041 or got to the ~0.032 horizontal which has held nicely.
Keeping a close eye on this current range it's… https://t.co/zS87IWz8En pic.twitter.com/IEgl6BRFM1
— Daan Crypto Trades (@DaanCrypto) October 13, 2025
Despite the recent correction, Ethereum’s overall trend remains positive, and traders are watching closely for the next breakout opportunity. If Ethereum holds its key support levels, the path to $10,000 could be just around the corner.
