Today, Ethereum (ETH) has fallen below the psychologically significant $4,000 level for the first time since August 8th. The decline in ETH prices can be attributed to a combination of macroeconomic, structure and crypto-specific factors.
Ethereum is below $4,000, analysts explain why
According to a cryptographic Quicktake post by the Arab Chain of Contributors, the latest descent of less than $4,000 in ETH can denounce a complex combination of factors. First, the strong US dollar has attenuated risk appetite, coupled with the Federal Reserve’s cautious attitude following interest rate cuts in September.
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Furthermore, rising bond yields and an increased risk of US government shutdowns will surprise investors and discourage investors from investing in risk-on assets, including cryptocurrencies such as ETH.
Second, analysts point to the role of leverage in ETH’s latest DIP. On September 22nd, more than $500 million ETH Long was wiped out within 24 hours, rewinding the high leverage accumulated in the second quarter of 2025.
Additionally, low weekend trading volumes and shallow order forms have strengthened ETH price fluctuations. Institutional investors in particular turned to OTC redemption following the Fed meeting to reduce ETH exposure.
From a technical standpoint, ETH has been unable to break through the tough resistance, close to $4,500-4,600. Failure to follow the $4,200 support would have worsened ETH and weakened momentum sharply.
The fifth reason was the regulatory headwinds surrounding digital assets, particularly the uncertainty of the EU MICA and US cryptography. The ETH Exchange-Traded Fund (ETF) was a $76 million worth of outflow that weighed on investors’ sentiment.
Finally, natural buy-side support has weakened due to a surge in validator exit queues and a decrease in staking inflows. Other factors have contributed to the sale of ETH, including seasonal weakness and increased dominance in the Bitcoin (BTC) market. The Arab chain concluded:
This revision reflects the power of structural position and macros rather than broken papers, but volatility may persist until fluidity returns and regulatory clarity improves.
Does ETH stage recovery?
The momentum is currently against ETH, but some analysts are optimistic about the shift in ETH’s fate for the coming months. For example, the open interest in ETH CME futures Inching It is close to a new high that sets a new potential target for $6,800 ETH by the end of 2025.
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Similarly, there are analysts in the surge in ETH contracts throughout the year I’m sure That digital assets could soon set out to gather up to $5,000. An illiquid supply of ETH is even more possible Promote That’s a new high.
In his latest analysis, Crypto commentator Ted Pillow It was predicted That an increase in global M2 money supply can pave the way for ETH of $20,000. At press time, ETH will trade at $3,959, a 3.6% decrease over the past 24 hours.
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