Ethereum Price Correction Amid Profit Booking and Strong Institutional Support

Ethereum price has corrected over 3% to $4,500 due to profit booking and selloff across the broader crypto market. Historically, September has been a weak month for Ethereum with a median return of negative 12.47%. Technical charts and on-chain data indicate that historical risks continue to linger. Analysts see $4,800-$4,880 as the key resistance zone for Ethereum's next upward move.

Ethereum (ETH) has experienced a correction of over 3% to $4,500 following a selloff across the broader crypto market. This downturn is consistent with historical trends, as September is traditionally a weak month for Ethereum, with a median return of negative 12.47% Bitcoin, Ethereum Price Rally Continues Despite September Historical Weakness^[1].

Technical charts and on-chain data suggest that historical risks continue to linger, but analysts remain optimistic about Ethereum's potential for a rebound. Key resistance zones for Ethereum's next upward move are identified between $4,800 and $4,880 Bitcoin, Ethereum Price Rally Continues Despite September Historical Weakness^[1].

Ethereum's recent price correction can be attributed to profit booking and selloff activity, which are typical during market downturns. Despite the current price drop, Ethereum's fundamentals remain strong, with a record net inflow exceeding $2 billion, hitting new highs in price and institutional ETF holdings August 2025 Web3 Chain Data Analysis: Ethereum Institutional Betting Reaches New Highs, New Public Chain Accelerates Funding^[2].

Solana, another high-performing public chain, has led in high-frequency transactions and active addresses, maintaining its position as a strong competitor to Ethereum. However, Ethereum continues to solidify its dominance in high-value scenarios, with significant on-chain activity and DEX volume reaching multi-year peaks August 2025 Web3 Chain Data Analysis: Ethereum Institutional Betting Reaches New Highs, New Public Chain Accelerates Funding^[2].

The current on-chain ecosystem is rapidly differentiating, with strong ecosystems like Ethereum, Worldchain, and Solana attracting capital inflows, while some side chains face pressure from capital withdrawal August 2025 Web3 Chain Data Analysis: Ethereum Institutional Betting Reaches New Highs, New Public Chain Accelerates Funding^[2]. This trend of "the strong getting stronger" is evident in the capital flow structure, indicating a shift towards more robust and sustainable blockchain ecosystems.

While Ethereum faces potential pressure from treasury activities, the overall macroeconomic conditions remain supportive for continued crypto rally momentum. Analysts believe that Ethereum's fundamentals and market positioning suggest a potential upside, with the key resistance zone for the next upward move identified between $4,800 and $4,880 Bitcoin, Ethereum Price Rally Continues Despite September Historical Weakness^[1].