Etherington, 41, quit his role after just 34 days in charge, having replaced the previous boss Kevin Betsy who was sacked in October.
Etherington, a former midfielder for Tottenham and West Ham, got off to a winning start in his first game in charge but then suffered back-to-back home defeats to Hartlepool and Sutton. The losses left Crawley 20th in the League Two table.
Darren Byfield is in temporary charge and he praised the character and commitment of his players, despite seeing his side let slip a 2-0 lead to draw 2-2 after a frantic finale at Newport last time out.
“I’m so proud of the boys,” said Byfield. “I’m gutted for them because we were 2-0 up and there were some dodgy decisions, for me. But I thought the players were superb. That’s what we’ve got to continue doing for whoever comes in.”
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