Ethereum (ETH) has stabilized around $4,500, raising questions among traders and investors: is this a pause before a new surge or the start of a correction?
Current Situation
After reaching an all-time high of $4,868 in August, ETH has faced strong resistance near $4,500. Attempts to break this level have repeatedly failed, indicating significant sell orders at this price. Currently, ETH trades around $4,185, down 3.9% compared to the previous day (coincentral.com).
Technical Analysis
- Support: The $4,200 level remains a key support.
- Resistance: Main resistance lies between $4,600–$4,700.
- Indicators: RSI and MACD suggest possible consolidation or short-term correction.
If ETH holds $4,200, there’s potential for a rally toward $5,000. However, a break below this level could push prices down to $4,000.
Macroeconomic Factors
The recent U.S. Federal Reserve rate cut triggered liquidations worth $1.7 billion on futures markets, with ETH accounting for 30% of those liquidations. This highlights ongoing market volatility and uncertainty.
📈 Institutional Interest
Despite short-term fluctuations, institutional investors continue to show strong interest in Ethereum. In August 2025, ETH-based ETFs attracted $4 billion in net inflows, signaling confidence in ETH’s long-term prospects.
If ETH breaks and holds above $4,500, a move toward $5,000 is possible. Conversely, a drop below $4,200 could trigger a correction down to $4,000.
