eToro stock price prediction: Bearish continuation favored as downside risk mounts

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EToro drops 5.87% after Q3 miss

Highlights

eToro Group Ltd reported third quarter 2026 net income dropped 74% year-over-year to $15 million due to reduced crypto trading activity.
Funded accounts climbed 18% to 4.39 million, and the board authorized up to $250 million in share repurchases.
Shares closed at $21.97, declining 5.87% on the day, with the price likely to consolidate between $21.2 and $22.74 as technical indicators show prevailing bearish trends and mixed momentum.

Trading profit drop drives negative sentiment despite user and product growth

EToro Group Ltd reported that its net income fell 74% year-over-year to $15 million in the third quarter of 2026, with Globenewswire attributing the decline primarily to reduced crypto trading activity. The company's net contribution also dropped 13% to $186 million, compounding top-line pressure, even as funded accounts increased by 18% to 4.39 million, pointing to ongoing user growth. Although the board authorized a share repurchase program of up to $250 million and the company rolled out a new AI-focused app along with expanded trading platforms, these positive actions have been overshadowed by the pronounced fall in trading profitability.

Mixed momentum signals as resistance holds and divergence appears

On the technical front, ETOR remains below the MA-20 and MA-50 on the hourly chart and trades well under the long-term MA-200, while immediate resistance is defined by the Ichimoku Kijun at $22.99. Momentum readings are mixed: MACD shows a Buy signal, ADX is Neutral, and both RSI and CCI are neutral, while the Stoch RSI stands in the overbought zone, suggesting short-term downside risk. Bull/Bear Power registers a positive 0.24, indicating some buyer presence, and the Awesome Oscillator is neutral. The conflicting momentum signals highlight a mild divergence, with Stoch RSI's overbought warning contrasting with generally neutral sentiment elsewhere.

Bearish breakout risk dominates as consolidation range tightens

Looking ahead, ETOR is expected to consolidate within a $21.2 to $22.74 range over the coming days, a typical volatility band relative to current levels. The probability for a downward move outweighs the upside, with bearish continuation favored at 67% versus a 33% probability for a rebound. For a bullish scenario to play out, the stock would need to break above resistance at $22.99, while a drop below support at $21.2 would open the door for additional declines. The baseline scenario favors further price stabilization within these bounds.

Viktoras Karapetjanc, expert at Traders Union, notes that ETOR is under pressure after a sharp drop in net income and lower trading revenues, despite recent user growth and strategic initiatives. He sees the fundamentals weighed by declining crypto activity, but views the rising number of funded accounts and share buybacks as supportive for the medium term. Near term, he expects price to stabilize in a broad range as the market digests these mixed signals. "If positive user trends continue and innovation bears fruit, ETOR could see renewed momentum once current macro headwinds ease."

Earlier, analysts noted that eToro was under persistent downside pressure as technical weakness and falling net income dominated the outlook. The current analysis reinforces this bearish backdrop and highlights $21.2 as the critical support level to monitor for potential additional downside risk in the near term.

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

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.