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Earlier today, Ethereum (ETH) slid below the psychologically important $4,000 level for the first time since August 8. The fall in ETH\u2019s price can be attributed to a mix of macroeconomic, structural, and crypto-specific factors.<\/span><\/p>\n According to a CryptoQuant Quicktake post<\/a> by contributor Arab Chain, ETH\u2019s latest descent below $4,000 can be blamed on a complex mix of factors. First, a strong US dollar, coupled with the Federal Reserve\u2019s (Fed) cautious stance following its September rate cut, dampened risk appetite.<\/span><\/p>\n Furthermore, rising bond yields and the increasing risk of a US government shutdown have spooked investors, discouraging them from investing in risk-on assets, including cryptocurrencies like ETH.<\/span><\/p>\n Second, the analyst points to the role of leverage in ETH\u2019s latest dip. On September 22, more than $500 million in ETH longs were wiped out within 24 hours, resulting in the unwinding of high leverage that was building up in Q2 2025. During the sell-off, ETH whales faced close to $45 million in forced sales.<\/span><\/p>\n In addition, low weekend trading volume and shallow order books enhanced ETH\u2019s price swings. Notably, institutional investors turned to OTC redemptions, following the Fed meeting to reduce their exposure to ETH.<\/span><\/p>\n From a technical perspective, ETH failed to decisively break through the stiff resistance near $4,500 \u2013 $4,600. Failure to defend the $4,200 support worsened things for ETH, turning the momentum sharply bearish.<\/span><\/p>\n The fifth reason was regulatory headwinds surrounding digital assets, especially the uncertainty around MiCA in the EU and US crypto legislation. ETH exchange-traded fund (ETF) outflows worth $76 million weighed on investor sentiment.<\/span><\/p>\n Finally, a surge in validator exit queues and reduced staking inflows weakened natural buy-side support. Other factors, such as seasonal weakness and Bitcoin\u2019s (BTC) rising dominance in the market, contributed to ETH\u2019s sell-off. Arab Chain concluded:<\/span><\/p>\n While this correction reflects structural positioning and macro forces rather than a broken thesis, volatility may persist until liquidity returns and regulatory clarity improves.<\/span><\/p>\n<\/blockquote>\n While the momentum is against ETH currently, some analysts are optimistic about a turnaround in ETH\u2019s fortunes in the coming months. For instance, ETH\u2019s CME futures open interest is <\/span>inching<\/span><\/a> closer to new highs, setting a new potential target for ETH of $6,800 by the end of 2025.<\/span><\/p>\n Similarly, the surge in ETH contracts throughout the year has some analysts <\/span>convinced<\/span><\/a> that the digital asset may soon embark on a rally to $5,000. ETH\u2019s illiquid supply could further <\/span>propel<\/span><\/a> it to new highs.<\/span><\/p>\n In his latest analysis, crypto commentator Ted Pillows <\/span>predicted<\/span><\/a> that the increase in global M2 money supply could pave the way for $20,000 ETH. At press time, ETH trades at $3,959, down 3.6% in the past 24 hours.<\/span><\/p>\n Featured image from Unsplash, chart and TradingView.com<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":" Earlier today, Ethereum (ETH) slid below the psychologically important $4,000 level for the first time since August 8. The fall in ETH\u2019s price can be attributed to a mix of macroeconomic, structural, and crypto-specific factors. Ethereum Dips Below $4,000, Analyst Explains Why According to a CryptoQuant Quicktake post by contributor Arab Chain, ETH\u2019s latest descent […]<\/p>\n","protected":false},"author":2,"featured_media":406259,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[235,203,210,234,231,232,237,238,236,233],"class_list":["post-406258","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain","tag-bitcoin","tag-crypto-currency","tag-elon-musk","tag-ethereum","tag-hyperledger","tag-ibm","tag-mining","tag-nodes","tag-spacex","tag-tesla"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/406258","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=406258"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/406258\/revisions"}],"predecessor-version":[{"id":406261,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/406258\/revisions\/406261"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/406259"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=406258"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=406258"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=406258"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Ethereum Dips Below $4,000, Analyst Explains Why<\/span><\/h2>\n
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Will ETH Stage A Recovery?<\/span><\/h2>\n
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