Earlier in the day, Ethereum (ETH) slipped below the level of $ 4,000 psychologically important for the first time since August 8. The drop in the price of ETH can be awarded to a mixture of macroeconomic, structural and crypto-specific factors.
Ethereum descends below $ 4,000, the analyst explains why
According to a Quicktake Cryptoque post by the Arabic Arab channel, the last descent of the ETH below $ 4,000 can be attributed to a complex mixture of factors. First of all, a strong American dollar, coupled with the prudent position of the Federal Reserve (Fed) after its drop in September rate, its mitigated risk appetite.
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In addition, the increase in bond yields and the growing risk of closing the US government have frightened investors, discouraging them from investing in risky assets, including cryptocurrencies like ETH.
Second, the analyst highlights the role of the lever effect in the last drop in ETH. On September 22, more than $ 500 million long long was wiped out within 24 hours, which resulted in the course of a high lever effect which accumulated in the second quarter of 2025. During the sale, ETH Whales was faced with nearly $ 45 million in forced sales.
In addition, the volume of low weekend trading and shallow command books have improved the oscillations of ETH prices. In particular, institutional investors turned to over -the -counter buyouts, after the Fed meeting to reduce their exhibition to ETH.
From a technical point of view, the ETH failed to decisively unravel the strong resistance almost $ 4,500 at $ 4,600. The fact of not defending the support of $ 4,200 has worsened things for ETH, which turns the moment highly down.
The fifth reason was the regulatory opposite winds surrounding digital assets, in particular uncertainty around the mica in EU and the United States cryptography legislation. The outings of funds negotiated on the ETH ETH (ETF) worth $ 76 million weighed on the feeling of investors.
Finally, an increase in the queues of exit from the validator and a reduction in the inputs of intention were weakening the natural support of the purchase. Other factors, such as seasonal weakness and the growing domination of Bitcoin (BTC) on the market, have contributed to the sale of ETH. The Arab chain concluded:
Although this correction reflects structural positioning and macro-funces rather than broken thesis, volatility can persist until liquidity returns and regulatory clarity improves.
Does ETH set a cover?
Although the momentum is currently against the ETH, some analysts are optimistic about a turnaround in Eth’s fortune in the coming months. For example, the open interest of CME in the long term of ETH is that Closer to the new heights, setting a new potential objective for ETH $ 6,800 by the end of 2025.
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Likewise, the sharp increase in ETH contracts throughout the year has certain analysts convinced That the digital assets could soon embark on a rally at $ 5,000. ETH’s non -liquid supply could further propel It is to new heights.
In his latest analysis, the commentator of the crypto ted pillows foreseen That the increase in M2’s global money supply could open the way $ 20,000 in ETH. At the time of the press, ETH is negotiated at $ 3,959, down 3.6% in the last 24 hours.
Star image of Unsplash, Chart and TradingView.com
(Tagstotranslate) Altcoin
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