Ethereum News Today: ETH Price Drops By 4%, ETF Outflows and Governance Fears Mount

Key Takeaways:Ethereum price drops 4.37% to $3,871.2, breaching key technical supportETF outflows exceed $145M, highlighting declining institutional interestInternal governance tensions raise concerns over Ethereum’s decentralization modelEthereum Price Falls Below $3,880 Amid Mounting Bearish PressuresEthereum’s price fell to $3,871.2, down 2.75% in the last 24 hours, underperforming Bitcoin (-3%) and the broader crypto market (-3.04%). The drop comes amid a confluence of ETF outflows, governance tensions, and bearish technical signals, weighing on investor sentiment and triggering concern over further downside risk. ETF Outflows Highlight Weak Institutional ConfidenceOn October 20, Ethereum ETFs recorded a combined net outflow of $284 million. This follows broader crypto volatility and uncertainty around Federal Reserve policy and a possible U.S. government shutdown.In comparison, U.S. Bitcoin ETFs saw a larger net outflow of $449.5 million (4,047 BTC), yet Ethereum’s lower 24-hour turnover ratio (0.08 vs. Bitcoin’s 0.15) signals weaker liquidity and higher vulnerability to downward price swings.This declining institutional interest raises red flags for Ethereum bulls who had pinned 2025 price hopes on broader ETF adoption. Governance Rift Shakes Ethereum's Decentralization NarrativeInternal tensions erupted publicly this week, as Ethereum core developer Péter Szilágyi accused Vitalik Buterin and the Ethereum Foundation of centralizing power and ignoring contributor compensation issues.Simultaneously, Polygon CEO Sandeep Nailwal criticized the foundation for undervaluing external projects and threatened to rebrand Polygon as a Layer-1.These disputes directly challenge Ethereum’s core value of decentralization, raising concerns of ecosystem fragmentation and low confidence among key stakeholders.Investors will be watching closely for a potential response from Buterin or policy shifts regarding contributor pay. Technical Indicators Turn Bearish Across the BoardFrom a technical standpoint, Ethereum’s price breakdown below the $4,000–$4,300 resistance confirms a bear flag pattern, which, according to Cointelegraph analysis, could project a further 20% drop toward ~$3,120 if the $3,800 level fails to hold.Current technical indicators reflect this shift:Momentum (10): 122.7, downward movement indicatedMACD Level (12, 26): -113.9, confirms bearish momentumRelative Strength Index (RSI): 41.6, approaching oversold territorySource: TradingViewThe price is now trading below nearly all key exponential and simple moving averages, including the 10-day EMA (3,988.9) and the 30-day SMA (4,163.7), further weakening short-term sentiment. Outlook and Levels to Watch: Can Ethereum Hold the $3,880 Line?Looking ahead, Ethereum must defend the 100-day EMA at $3,880 to avoid slipping into deeper correction territory. The 200-day EMA sits at $3,567.7, which could act as the next major support if current levels break.