What's behind eToro's latest 6.8% stock pullback?

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Etoro slides 6.85% today on weak Q3

Highlights

eToro Group reported a 74% decrease in third-quarter net income to $15 million as crypto trading activity declined sharply.
Funded accounts rose 18% to 4.39 million, assets under administration held at $20.8 billion, and up to $250 million in share repurchases was approved.
Shares of eToro trade below all key moving averages, with technical signals showing persistent bearish momentum and a five-session range of $20.87 to $23.33.

Net income plunge and acquisitions fuel persistent selling pressure

eToro Group Ltd reported a 74% year-over-year decline in third-quarter net income to $15 million, primarily attributed to a significant reduction in crypto trading activity. Funded accounts increased by 18% to 4.39 million, and assets under administration remained stable at $20.8 billion. Net contribution fell 13% to $186 million, and adjusted EBITDA dropped 56% to $34 million. The board approved up to $250 million in share repurchases, and eToro launched an AI-driven trading app and announced an acquisition of the Argentine fintech LB Finanzas during the quarter, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, notes a pronounced decline in eToro’s fundamentals. He stresses that the 74% year-over-year drop in net income and sharp fall in EBITDA expose operational fragility. The steady number of funded accounts and stable assets under administration have failed to offset persistent selling. Kharitonov is critical of the board's share repurchase initiative, seeing it as a reactionary measure rather than a sign of strength. "Until there is real recovery in trading activity, especially in crypto, I see little reason to expect a turnaround from current bearish pressures," he says.

Viktoras Karapetjanc, expert at Traders Union, views eToro’s expansion efforts as a positive signal for future growth. He highlights the launch of an AI-driven trading app and the acquisition in Argentina as catalysts for market share gains. Karapetjanc emphasizes the stable base of assets under administration and increasing funded accounts as promising signs. "The company’s strategy and new products position it for a rebound — I expect renewed momentum as market conditions stabilize," he asserts.

Jainam Mehta, market strategist, observes that eToro trades below all major moving averages, which confirms the prevailing downtrend. He points out that short-term volatility may offer tactical opportunities if price approaches primary support at $20.87. Mehta suggests watching for a potential breakout above $22.13 for confirmation of a reversal. "If the stock consolidates near these levels, there may be a contrarian setup for nimble traders on either side of the range," he concludes.

Broad technical weakness as price breaks key support levels

eToro is currently trading below all key moving averages, with the price at $21.74 versus the MA-20 at $23.71, MA-50 at $26.37, and MA-200 at $32.50. This placement highlights sustained bearish momentum across short, medium, and long timeframes. The near-term ceiling stands at $22.13, with the primary support at $20.87. Momentum indicators point to persistent downside, as both the MACD and Average Directional Index (ADX) confirm a bearish backdrop. The Relative Strength Index (RSI) and Commodity Channel Index (CCI) are neutral, while the Stochastic RSI is overbought, implying short-term overheating. BBP remains just above zero, indicating weak buyer presence in intraday trading. The price has dropped $1.599, opening with a downside gap and remaining close to session lows, as intraday volatility measures 1.34%. Today’s session featured ongoing selling pressure with minimal recovery attempts.

Earlier, analysts noted that eToro stock was under sustained downside pressure despite new technology rollouts and persistent efforts to drive client engagement. The current analysis reinforces this view, highlighting renewed bearish momentum and identifying $20.87 as the critical support to watch for potential further downside risk.

Source of Data: ETOR Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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