Coinspeaker
Aug 27, 2025
6 0

Ethereum Faces Potential Drop Below $4,300 After Recent Consolidation

Ethereum (ETH) is recovering from a recent decline, gaining 3.5% on August 26. Analyst Markus Thielen highlighted that ETH is in a critical phase with weakening momentum.

  • ETH respects its 21-day moving average around $4,355, showing multiple bounces in August.
  • Large buyers have supported this level, but dip-buying strength is decreasing.
  • Thielen predicts ETH may oscillate between $4,355 and $4,958 short-term, with risks of dropping below $4,355 if selling resumes.

A Major Long Squeeze

  • On August 24, open interest on Binance dropped over 14% as ETH fell below $4,400, leading to significant liquidations.
  • This indicates a forced deleveraging event rather than voluntary selling.
  • ETH funding rates are near zero, reflecting diminished bullish sentiment and flushing late buyers out of the market.

ETH Price Outlook

  • Currently trading near $4,586 after testing support at $4,350; previously peaked at $4,953.
  • The price is filling a bearish gap between $4,600 and $4,450, with potential to drop towards $4,000 if selling accelerates.
  • Bulls need to reclaim the $4,662 zone and close above $4,700 to revive bullish momentum toward $5,000.
  • Analyst Ted suggests ETH could reach $10,000 by year-end, anticipating a dip in September as a buying opportunity.