Ethereum News Today: Ethereum's $4,250 Test: 2020 Bitcoin Echo or a Deeper Fall?

Ethereum (ETH) faces mounting bearish pressure as its price dips below $4,400, testing critical support levels that could determine its near-term trajectory. Analysts highlight the $4,250 zone as a pivotal battleground, with technical indicators and institutional activity underscoring heightened volatility. The cryptocurrency has consolidated within a range defined by key support at $4,200–$4,250 and resistance near $4,700–$4,956, reflecting a tug-of-war between bulls and bears.

Recent data reveals a surge in institutional confidence, with Grayscale staking $5.1 billion in Ethereum through large batch deposits into its staking contract. This move underscores long-term optimism despite short-term price fluctuations. However, bearish momentum remains strong, evidenced by a MACD crossover below the signal line and a red histogram confirming downward pressure. The ADX (14) at 27.38 indicates a moderately strong bearish trend, while trading volume has spiked 65%, signaling aggressive positioning by market participants.

Technical analysis suggests Ethereum is in a rising wedge pattern, with a breakdown below $4,250 exposing it to further declines toward $3,500–$3,700. Crypto analyst Ted Pillows draws parallels between Ethereum's current correction and Bitcoin's 2020 cycle, where a 25%-30% pullback preceded a parabolic rally. If Ethereum mirrors this pattern, a similar correction could send it to $3,500–$3,700 before a potential rebound. Conversely, a bullish scenario hinges on holding above $4,250, enabling a retest of $4,700–$4,800 and potentially a push toward $5,000.

On-chain metrics highlight weakening demand, with Ethereum's circulating supply rising due to a declining burn rate from reduced user activity. ETF outflows have also accelerated, with $389 million leaving Ethereum-focused funds in October 2025-the largest monthly exit since March. This trend contrasts with Bitcoin's resilience, as the ETH/BTC ratio has plummeted to a five-year low, reflecting Ethereum's struggle to maintain relevance amid competition from Layer 2 solutions and rivals like Solana.

Market sentiment remains split. While some analysts view the current correction as a cyclical shakeout within a broader bull trend, others warn of structural underperformance. The RSI at 54.76 suggests neutrality, but the 50-day and 200-day moving averages trading below current prices signal bearish bias. Institutional accumulation, however, persists, with whale activity totaling $230 million in Ethereum deposits.

The coming weeks will be critical for Ethereum's price action. A breakdown below $4,250 could trigger a cascade to $3,500–$3,700, while a sustained rebound above $4,400 may rekindle bullish momentum. Given the mixed signals from technical indicators and macroeconomic factors, traders are advised to monitor key levels and volume dynamics closely.

Source: [1] Coingabbar (https://www.coingabbar.com/en/price-prediction/ethereum-price-prediction-hold-or-fall-to-4250)

[2] Coinedition (https://coinedition.com/ethereum-eth-price-support-4250-level-september-2025/)

[7] FxLeaders (https://www.fxleaders.com/news/2025/10/06/ethereum-eyes-5000-breakthrough-as-whales-accumulate-118m-and-bitcoin-tests-new-ath/)

[8] Beincrypto (https://beincrypto.com/what-to-expect-from-ethereum-october-2025/)

[10] AnalyticsInsight (https://www.analyticsinsight.net/news/analyst-explains-why-ethereum-ratio-to-bitcoin-is-dropping-to-5-year-lows)

[11] Coincodex (https://coincodex.com/article/74490/ethereum-prediction-october-09-2025/)

[13] TechBullion (https://techbullion.com/ethereums-pullback-meets-the-charts-what-rsi-macd-and-moving-averages-are-signaling/)