Ethereum News Today: Ethereum's $4k Test: The Threshold Between Rally and Correction

Generated by AI AgentCoin WorldReviewed byAInvest News Editorial Team
Sunday, Oct 26, 2025 2:31 am ET1min read
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Aime RobotAime Summary

- Ethereum trades in $3,930–$3,945 range, with $4,000 as key resistance for potential $4,100+ rally or $3,870–$3,880 pullback.

- DeFi growth (8% weekly TVL rise) and 1.2M+ daily transactions signal sustained on-chain demand amid burn rate acceleration.

- Analysts project $4,800–$5,000 by year-end if $4,400–$4,500 breakout succeeds, contingent on DeFi expansion and macro stability.

- CoinDesk 5 Index's narrow 1,920–1,960 range reflects caution, but deflationary mechanics and institutional adoption support medium-term bullishness.

Ethereum's price action remains in a critical consolidation phase as traders and analysts weigh near-term technical levels against long-term bullish fundamentals. The cryptocurrency, currently trading around $3,946, has been oscillating within a tight range between $3,930 and $3,945, with key resistance at $4,000 acting as a psychological barrier, according to

a CoinDesk analysis
. Analysts suggest a clean break above this level could reignite a push toward $4,100 and beyond, while a failure to hold above $3,930 risks a pullback to $3,870–$3,880, the CoinDesk piece adds.

The immediate price trajectory hinges on Ethereum's ability to convert its current support zones into catalysts for a sustained rally. Over the past 24 hours, ETH has tested intraday buy zones between $3,900 and $3,920 while encountering stiff resistance near $3,950–$3,960, the CoinDesk piece observed. On the one-month chart, the asset has rebounded from a mid-October dip but remains below early-month highs, reinforcing the notion that a longer-term uptrend depends on overcoming $4,000 resistance and validating reclaimed support levels, analysts said.

Meanwhile, broader network activity and DeFi growth are providing tailwinds for Ethereum's price. Daily transactions on the network have surpassed 1.2 million, and total value locked (TVL) in DeFi protocols has risen 8% week-over-week, according to

a Crypto.news report
. These metrics, coupled with a gradual increase in gas fees, indicate growing on-chain demand and a disinflationary dynamic as Ethereum's burn rate accelerates, the report notes. Analysts highlight that Layer-2 adoption is also playing a pivotal role, helping scale the network while maintaining mainnet demand.

Looking further out, projections for Ethereum's price trajectory vary but share a common theme: a breakout above $4,400–$4,500 could propel ETH toward $4,800–$5,000 by year-end, the Crypto.news report suggests. However, this scenario assumes continued DeFi expansion and macroeconomic stability. Conversely, a drop below $3,700 could trigger a deeper correction to $3,300–$3,400, particularly if network activity slows, the report adds.

The market's cautious stance is reflected in the CoinDesk 5 Index, which has fluctuated narrowly between 1,920 and 1,960 over the past week. While short-term volatility persists, the underlying fundamentals—ranging from deflationary mechanics to institutional adoption—remain intact, supporting a medium-term bullish outlook, the Crypto.news report and CoinDesk analysis both noted.