Earlier today Ethereum (ETH) fell below the level of psychologically 4000 USD for the first time from August 8. The collapse of the ETH price can be assigned to a mixture of macroeconomic, structural and cryptographic factors.
Ethereum will fall below USD 4,000, the analyst explains why
According to rapid cryptochants post By Arab collaborator ETH chain, the latest descent of ETH below 4000 USD can be blamed for a intricate mix of factors. First of all, a robust American dollar, combined with a cautious attitude of the federal reserve (FED) after a reduction of the September rate, suppressed risk appetite.
In addition, the growing yields of bonds and the growing risk of closing the US government issued investors, discouraging them from investing in risk assets, including cryptocurrencies such as ETH.
Secondly, the analyst indicates the role of the lever in the latest ETH decline. On September 22, over $ 500 million in ETH of the length was erased within 24 hours, which resulted in the unwinding of a high lever, which was created in the second quarter of 2025. During the sale of ETH whales, almost $ 45 million on forced sales stood in the face of the ETH whales.
In addition, low speed of rotation and shallow books ordered increased fluctuations in ETH price. In particular, institutional investors asked OTC to redeem, after the Fed meeting to reduce the exhibition at ETH.
From a technical point of view, ETH could not be significantly broken by immovable resistance near $ 4,500 to 4,600 USD. Lack of support of support worth USD 4,200 worsened things for ETH, turning the shit of the bear sharply.
The fifth reason was regulatory winds on the head surrounding digital assets, especially uncertainty around Mika in EU and US cryptocurrency legislation. Eth Exchange Traded Fund (ETF) outflows worth $ 76 million for investors.
Finally, the growth of the Walidators’ starting queue and reduced inflows weakened the natural support on the purchase side. Other factors, such as the seasonal weakness and the growing domination of Bitcoin (BTC) on the market, contributed to the ETH sales. The Arab chain stated:
While this correction reflects structural positioning and macro forces, not a broken thesis, variability may persist until the returns from liquidity and regulatory transparency fails.
Does ETH set a revival?
While the rush is currently against ETH, some analysts are optimists about changing the fate of ETH in the coming months. For example, open interest in Futures Eth CME Canning Closer to fresh ups, establishing a fresh potential ETH target in the amount of USD 6800 by the end of 2025.
Similarly, the escalate in ETH contracts throughout the year has several analysts convinced that digital assets may soon start a rally to $ 5,000. Unlucky ETH supply can continue propel It’s for fresh ups.
In his latest analysis, cryptographic commentator Ted Pillows anticipated that the escalate in global cash supply M2 can pave the road for 20,000 USD ETH. During the ETH press it trades at USD 3,959, which is a 3.6% decrease in the last 24 hours.
A distinguished picture from Unsplash, Chart and TradingView.com
