Ethereum (ETH) and Bitcoin (BTC) prices both fell despite positive news about Franklin Templeton’s proposed Bitcoin and Ethereum index ETFs. Market sentiment remained cautious at the start of October as both leading cryptocurrencies struggled to maintain momentum during the historically bullish October trend often referred to as “Uptober.”

Currently, ETH is trading around $2,385, having previously fallen to a low of $2,311. Since Oct. 1, ETH has fallen by about 12.73% from a high of $2,648. While ETH remains above the critical $2,300 support level, a break below that could see it fall to $2,100 or even below $2,000.

Investor sentiment has shifted to a more cautious stance, as evidenced by the increase in Ethereum exchange reserves. Data from CryptoQuant shows that exchange reserves increased by more than 186,000 ETH in just 24 hours, indicating increasing selling pressure.

Currently, the price of Ethereum has fallen by nearly 0.33% on the day. In the past 24 hours, the amount of ETH liquidation exceeded US$44.89 million, of which long positions were US$34.93 million and short positions were US$9.96 million.

In addition, Ethereum ETFs recorded a net outflow of $3.2 million on Thursday. Although BlackRock's ETHA saw an inflow of $12.08 million, it was not enough to offset Grayscale's ETHE outflow of $14.69 million. Historically, Ethereum ETFs have struggled to match the performance of Bitcoin ETFs.

Does Ethereum’s Price Drop Signal a Bearish Trend?

Despite the initial optimism in October, Ethereum had a sluggish start to the month, falling below the $2,350 support level. Ethereum also fell below the 50-day and 200-day moving averages, signaling a potential bearish trend. The next support level to watch is $2,280, a break below which could lead Ethereum to fall further towards $2,200.

Ethereum’s Stochastic RSI shows overbought conditions with a relative strength index (RSI) of 33 and increasing selling pressure. This suggests a possible reversal as Ethereum approaches oversold levels. However, if the Ethereum price recovers above $2,550, it may invalidate the current bearish outlook.