Ethereum (ETH) has fallen below the critical $4,000 level amid renewed market uncertainty following comments from Federal Reserve Chair Jerome Powell.
Powell’s indication that the latest 25-basis-point rate cut may be the last of 2025 has fueled caution across both traditional and crypto markets. As a result, the Ethereum price is at slightly above $3,900, marking a 2.2% daily decline, with Bitcoin and other major altcoins also in the red.
While the Ethereum price slipped, institutional accumulation has intensified. Data shows that institutions now hold 4.1% of Ethereum’s total supply, surpassing Bitcoin’s 3.6% for the first time. Analysts attribute this shift to the GENIUS Act, which provides a clear framework for stablecoin and on-chain finance regulation.
Technically, the Ethereum price shows mixed signals. RSI sits at 44, and the MACD line remains below the signal line, both pointing to fading bullish momentum.
Analysts caution that if ETH fails to reclaim $4,000, it could revisit support zones around $3,850–$3,750. A decisive close above $4,100, however, may renew bullish sentiment toward $4,400–$4,500.
Similarly, gas fees remain near historic lows, signaling improved scalability driven by Layer-2 networks such as Arbitrum, Optimism, and Base.
This efficiency milestone showcases Ethereum’s technological evolution, from its proof-of-stake transition to the upcoming EIP-4844 (proto-danksharding) upgrade.
Analysts believe this combination of strong institutional demand and record network usage, despite short-term price pressure, positions the Ethereum price for a sustained recovery once macroeconomic headwinds ease.
Cover image from ChatGPT, ETHUSD chart from Tradingview
