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Ethereum trades around $4,270, facing pressure near the $4,000 support level.
ETFs' inflows and Fed policy shifts are driving cryptocurrency market moves.
Long-term upgrades keep Ethereum strong, but short-term risks remain high.
Ethereum has always been one of the most closely watched cryptocurrencies after Bitcoin. Over the past few weeks, its price movement has raised questions about whether it is entering a serious decline or simply going through a temporary correction. Investors are carefully observing global market signals, technical charts, and ongoing blockchain upgrades to assess what comes next.
Ethereum is currently trading around $4,270, after fluctuating between $4,114 and $4,370 in the same trading session. This marks a modest recovery compared to earlier losses, but the coin is still under pressure. Reports have shown that Ethereum recently dropped about 12% from its recent highs, struggling to hold above the $4,100 support level despite strong inflows into cryptocurrency exchange-traded funds (ETFs). These ETFs saw about $2.8 billion in new investments, showing that institutional interest is still present.
At the same time, Ethereum has recorded a week-over-week decline of 4.5%, slipping from around $4,350 to $4,150. The pullback has been linked to global uncertainty, upcoming token unlocks that may increase selling pressure, and profit-taking after sharp rallies earlier this year. Technical traders suggest that the range between $4,300 and $4,360 is an important “liquidity zone,” where many short positions could get liquidated. If that happens, Ethereum could quickly push toward $4,750 or even $8,000 in a strong bullish scenario.
The recent weakness of Ethereum price cannot be seen in isolation. The US Federal Reserve’s stance on interest rates has weighed heavily on the cryptocurrency market. Investors were initially expecting more aggressive rate cuts, but the central bank’s cautious approach slowed enthusiasm across risk assets, including crypto. As a result, Ethereum fell nearly 1.6% when the minutes of the Fed’s meeting were released, echoing similar movements in technology stocks.
Profit-taking has also been a major factor. After Ethereum reached record highs earlier this year, traders began locking in profits, which triggered a 3% decline in a single session. However, not all signals have been negative. A recent US executive order expanding cryptocurrency exposure in retirement accounts gave the sector a fresh boost, suggesting that regulators are slowly opening the door to mainstream adoption.
The market has also shown divergence between leading tokens. In some sessions, Ethereum posted 2.7% gains, while Bitcoin moved slightly lower. This reflects the complex dynamics of how capital flows into different crypto assets depending on news, sentiment, and liquidity. Analysts argue that the recent correction looks more like a healthy retracement after a strong rally rather than a sign of structural weakness.
Also Read: Ethereum Price Prediction: Why ETH Might Fall Before Its Next Rally?
From a technical perspective, Ethereum is moving within a broad trading range. The lower boundary is around $4,000, which acts as strong support. If prices break below this level, Ethereum could fall further toward $3,800. On the upside, $4,800 remains a critical resistance level. Crossing this threshold could set the stage for another rally, possibly pushing the price to $5,500 or $6,000.
Moving averages also provide mixed signals. The short-term 50-day moving average suggests bearish momentum, but the longer-term 200-day moving average is still rising, which indicates that the overall trend remains positive. Some speculative forecasts go even further, suggesting that Ethereum could reach $8,000, provided market sentiment improves and institutional inflows continue to grow.
Beyond price charts, altcoin's fundamentals remain strong. The blockchain continues to undergo major upgrades aimed at making it faster, cheaper, and more scalable. The “Dencun” upgrade, which includes Proto-Danksharding (EIP-4844), is designed to reduce transaction costs on Layer-2 networks. Another upgrade, called “Pectra,” expands staking capacity, allowing validator stakes to range between 32 ETH and 2,048 ETH.
These changes are expected to strengthen Ethereum’s role as the backbone of decentralized finance (DeFi) and Web3 applications. However, the market’s reaction has been muted. In 2025, despite these advances, Ethereum has underperformed Bitcoin and some rival blockchains, losing more than 45% in relative terms. This underlines the fact that technical innovation does not always guarantee immediate price appreciation.
Ethereum, like all cryptocurrencies, remains vulnerable to volatility. It has experienced sharp downturns in the past, including a one-week loss of 26% in May 2022. Similar risks remain today. Large token unlocks, which release previously staked coins back into circulation, can create sudden selling pressure. In addition, global events, inflation data, and changing interest rates can quickly shift investor sentiment.
Another area of concern is regulatory policy. While there have been positive developments, such as retirement accounts gaining crypto exposure, tighter rules on staking, token listings, or decentralized exchanges could weigh on Ethereum’s price in the future.
Ethereum is not in freefall, but it is in a period of consolidation. Prices are correcting after rapid gains, and the market is watching closely to see whether $4,000 support holds. If it does, Ethereum could stabilize and build momentum for another rally. If it breaks down, the next stop may be $3,800 or even lower.
At the same time, Ethereum continues to attract institutional capital, benefit from technological upgrades, and maintain its role as the most widely used blockchain for decentralized applications. This suggests that the long-term outlook remains strong, even if the short-term trend is uncertain.
Anyone looking at Ethereum price prediction right now must accept that volatility is part of its nature. The coin can swing by double-digit percentages in a matter of days. A clear plan, strong risk management, and a long-term horizon are essential. Watching key technical levels such as $4,000 support, $4,360 liquidity zone, and $4,800 resistance can provide useful entry and exit signals.
It is also important to pay attention to global economic indicators. The US Federal Reserve’s comments on interest rates and inflation often act as triggers for major moves in crypto prices. In the same way, new upgrades on the Ethereum network or large-scale institutional investments could create momentum on the upside.
Also Read: Will Ethereum Be the Biggest Macro Trade in the Next 10 Years?
Ethereum is at a crossroads. Prices have fallen from recent highs, but the decline appears to be more of a healthy correction than a collapse. Market dynamics, global policies, and upcoming blockchain upgrades will determine the next phase.
While short-term risks remain, Ethereum’s strong fundamentals, widespread adoption, and role in the broader cryptocurrency ecosystem make it an asset with significant long-term potential. For now, the critical range between $4,000 and $4,800 will decide whether the next move is another rally or a deeper decline.
