Ethereum (ETH) falls below the $4,000 level, what level could it fall to?

Ethereum (ETH) continues to plummet below the 4,000 USD threshold during the trading session on Friday morning, increasing liquidation pressure on investors holding long positions on futures contracts significantly. In just four days, the market has witnessed a total value of longs "blown away" by more than 400 million USD – the second time this figure has exploded due to the prevailing pessimism surrounding the crypto market, pulling Ethereum down further. Notably, this drop comes right after Coin Photon reported that the funding rate of ETH has turned negative on Wednesday.

Despite the bleak context still looming, REX Shares has made its mark by launching the first Ethereum staking ETF in the U.S.

###REX Shares launches the first Ethereum staking ETF in the US

REX Shares partners with Osprey Funds to launch a new Ethereum ETF in the US market, providing investors the opportunity to benefit from ETH price fluctuations while also receiving staking rewards.

According to the press release on Thursday, the product named REX-Osprey ETH + Staking ETF ( code ESK) will track the spot price of Ethereum and specifically distribute staking rewards directly to investors each month.

"100% of the staking rewards earned will be transferred to the investors, REX and Osprey will not hold back anything," representatives of the two companies emphasized.

The difference between ESK and traditional ETH ETF funds in the US is the registration under the Investment Company Act of 1940, which allows the fund to operate similarly to a collective investment fund. This is also the model that REX applied when introducing the Solana staking ETF in July. Prior to that, this company drew attention by launching the first Dogecoin and XRP ETFs in the US.

The move comes amid the U.S. Securities and Exchange Commission (SEC) continuing to delay its decision on proposals to add staking features to the ETH ETF funds of major players such as BlackRock, Franklin Templeton, and Fidelity.

As of now, the Ethereum ETF funds launched since July 2024 have recorded a total net asset of approximately 27 billion USD, according to data from SoSoValue. However, the recent capital flow has shown signs of weakening, with three consecutive sessions recording a net outflow of a total of 296 million USD.

###Ethereum Price Forecast: ETH Falls Below 4,000 USD, Seeking Support at 100-Day SMA

According to data from Coinglass, in the past 24 hours, the market has witnessed over 431.5 million USD in Ethereum futures contracts being liquidated, with long positions alone accounting for up to 401.8 million USD.

ETH has lost the psychological threshold of 4,000 USD for the first time since August 8. Currently, the largest altcoin in the crypto market is seeking support around the 100-day simple moving average (SMA) – a region that played a crucial support role during the deep fall on June 22.

ETH/USDT Daily Chart | Source: TradingViewThe bulls are expected to increase support at the 100-day SMA to regain control, which has been somewhat reflected in the short-term rebound of ETH when it hit this threshold. Conversely, if it fails to hold above the 100-day SMA, this coin risks falling deeper towards the 3,500 USD zone.

Technical indicators such as RSI and Stochastic Oscillator are currently approaching the oversold zone. This indicates that the downward pressure is still dominant, but it also opens up the possibility for a short-term rebound.

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