Bearish undercurrents grip crypto market amid Fed shift, heavy ETF outflows

The crypto market, analysts believe, is teetering at a pivotal juncture, with overall sentiment drifting from neutral to bearish. Flagship cryptocurrencies Bitcoin (BTC), and Ethereum (ETH) have slipped below key support levels, while altcoins remain scattered in performance, reflecting a lack of unified momentum across the board.

 

On the macro front, comments from the US Federal Reserve Chair have shifted the narrative, signaling a greater emphasis on labor market stability over aggressive inflation control. In response, markets are now pricing in additional rate cuts for the remainder of the year—a dovish pivot that analysts believe could lend short-term support to risk assets like Bitcoin, especially if incoming US data continues to soften.

 

Adding to the caution, ETF flows have turned negative: on September 23, Bitcoin funds recorded $103.8 million in outflows, while Ethereum products saw a steeper $140.8 million exit. The sharp drawdown underscores a dip in institutional risk appetite, tempering any near-term optimism and reinforcing the market’s ongoing volatility.

Bitcoin immediate resistance lies at $113,600–$114,000

After slipping below $112,000, the flagship currency has shown a slight recovery. At last check, Bitcoin was trading at $112,643, down 0.27 per cent over the past 24 hours. According to CoinMarketCap, the asset fluctuated between $111,229 to $113,351 during the session. Its daily trading volume surged to $50.26 billion, while market capitalisation remained steady at $2.24 trillion, reinforcing Bitcoin’s status as the world’s largest digital asset.

 

Riya Sehgal, research analyst at Delta Exchange, believes the current trend in cryptocurrency shows neutral to bearish sentiment. "The decline of Bitcoin below crucial support levels makes the next downside wave critical."

 

From a technical standpoint, Sehgal believes immediate resistance stands at $113,600–$114,000, while failure to reclaim this zone could expose BTC to $110,500 and even $107,500.

 

Meanwhile, according to the CoinSwitch Markets Desk, the key support for the flagship currency sits in the $111,600–$111,800 range, with resistance at $112,600–$112,800.

 

"The structure tilts slightly bearish unless BTC can reclaim and hold above $113,000. A break below $111,600 could open the door to deeper downside. For now, sentiment stays cautious, with low conviction on either side."

Ethereum (ETH) faces resistance at $4,280–$4,370

Ethereum is also struggling under pressure, consolidating below $4,220 with strong resistance in the $4,280–$4,370 zone. At last check, ETH was trading at $4,174, down 0.82 per cent, with intraday price fluctuations between $4,081 and $4,227. Trading volume reached $35.53 billion. Ethereum remains approximately 15 per cent below its recent peak of $4,953, reached on August 25, 2025.

 

That said, at current levels, without a breakout, Sehgal believes ETH risks deeper corrections toward $3,880–$3,750. 

Meanwhile, Harish Vatnani, head of trade at ZebPay, believes that technically, the immediate resistance for Ethereum lies at $4,400–$4,500, marked by the descending trendline connecting recent lower highs and a rectangle top.

The key support, he said, is seen at the $3,800 USDT area, which is the next logical target as marked by previous horizontal support.

 

"The breakdown candle is associated with a marked increase in trade volume, often indicative of panic selling or institutional profit-taking. The preceding weeks showed declining volume during consolidation—a classic setup for a breakout or breakdown, which materialised to the downside," said Vatnani.

Altcoins show mixed trends

Astar (ASTER) was the top performer among the altcoins with a 24 per cent rally on Wednesday, according to CoinMarketCap. Further, Zcash (ZEC), ether.fi (ETHFI), Quant (QNT), Immutable (IMX), Sky (SKY), PancakeSwap (CAKE), Pi (PI), Mantle (MNT), Flare (FLR), Conflux (CFX), Pyth Network (PYTH), Monero (XMR), Tezos (XTZ), BNB (BNB) were other notable gainers, rising in the 2–12 per cent range on Wednesday.

 

Conversely, 0G (0G), MemeCore (M), Hyperliquid (HYPE), DeXe (DEXE), Solana (SOL), World Liberty Financial (WLFI), Pendle (PENDLE), Avalanche (AVAX), Story (IP), XDC Network (XDC), OKB (OKB), Worldcoin (WLD), Bittensor (TAO), Aerodrome Finance (AERO), Stellar (XLM) were the top laggards, witnessing a decline of up to 12 per cent.