Ethereum News Today: Ethereum Faces 25% Correction Risk Before $4,000 Breakout

Ethereum is approaching the $4,000 mark, a resistance level that has proven challenging to surpass in previous market cycles. Analysts are warning that this zone could trigger a short-term correction before any significant breakout occurs.

Crypto analyst Michaël van de Poppe has suggested that Ethereum’s current rally may face resistance below the $4,000 level. He believes that the market needs to experience a pullback to allow overextended long positions to reset and bring liquidity back to the market before a sustained upward move can occur.

Van de Poppe is not alone in this view. Another analyst, Follis, has pointed to Ethereum’s price action earlier this year, where the cryptocurrency surged and then corrected by 26% within a fortnight. Follis suggests that a 25% correction, which could bring Ethereum down to around $2,900, is possible given the recent 80% gain in the last month.

Van de Poppe sees this correction phase as crucial for strengthening Ethereum’s long-term structure. He views any retracement as a strategic opportunity for accumulation rather than a sign of weakness. The $2,900 zone is highlighted as a key buy zone amid the expected pullback.

Despite the pullback predictions, not all experts agree on the immediate downside. Analyst Ted anticipates Ethereum to continue trending towards $4,000 in the coming days. He attributes this momentum to the recent Bitcoin rally, which has historically led to a rotation of capital into altcoins like Ethereum.

Regarding its quarterly performance, Ethereum has shown strength against Bitcoin. In the third quarter of 2025, Ethereum rose by 52.43%, while Bitcoin rose by 10.98%. Ted suggests that this current overperformance may shift focus to smaller-cap altcoins once Ethereum clears the higher price range.

Ethereum’s journey towards $4,000 is a critical focus for investors. While a short-term decline appears likely, analysts remain confident in Ethereum’s longer-term trajectory, especially if the predicted correction creates more substantial support for the next upward move.