Ethereum Reclaims $4,000: Can Bulls Push Toward $4,500 Next?

Ethereum Reclaims $4,000 as Staking and ETF Inflows Boost Investor Confidence

Ethereum, the world’s second-largest cryptocurrency by market capitalization, has staged a notable recovery, regaining the psychological $4,000 threshold after briefly dipping below it for the first time in nearly two months. The rebound, which took place on September 25, reflects both growing on-chain activity and renewed interest from institutional investors, signaling that confidence in the asset remains resilient despite recent volatility.

At press time, Ethereum (ETH) was trading at approximately $4,013, marking a 2.2% increase over the previous 24 hours. This rebound comes in the context of a broader crypto market struggling to maintain momentum, with Bitcoin and other major altcoins experiencing notable declines. Ethereum’s ability to reclaim such a critical level highlights both the underlying strength of its network and its continued relevance within the digital asset ecosystem.

Staking Surge Provides Stability

One of the key factors supporting Ethereum’s recovery has been the rapid increase in staking activity. According to data from Beaconcha.in, more than 2,589 ETH were staked in the network’s contracts over the last 24 hours. This influx pushed the total staked amount to approximately 35.7 million ETH, valued at around $11 billion at current market prices.

Staking serves a dual purpose in the Ethereum ecosystem: it secures the network while reducing the circulating supply of tokens available on the market. In times of heightened volatility, staking inflows can help mitigate selling pressure by locking tokens into long-term commitments. Analysts note that the latest staking surge helped offset Friday’s wave of liquidations, which briefly sent ETH tumbling below $4,000.

“The consistent growth in Ethereum’s staking base demonstrates ongoing confidence in the network’s proof-of-stake model,” said one blockchain researcher. “Investors are increasingly willing to commit tokens for the long term, reducing near-term liquidity risks and enhancing price stability.”

Institutional Inflows Add Momentum

Beyond the retail and on-chain fundamentals, Ethereum’s resurgence also benefited from growing institutional participation. Bloomberg ETF analyst Eric Balchunas reported that the newly launched T. Rex 2x BitMine ETF (BMNU) saw inflows of $32 million on its first day of trading. The strong debut placed the fund among the top three best-performing ETF launches in the United States in 2025, underscoring the appetite for crypto-linked financial products.

While BMNU primarily focuses on leveraged strategies, its performance signals that investors remain eager to gain exposure to digital assets through traditional financial markets. This, in turn, helps sustain Ethereum’s liquidity and price support, particularly as ETH remains a core component of most crypto-linked ETFs.

Although Ethereum remains below its August peak of $4,953, institutional demand has played an important role in supporting its price near critical levels. The ETF inflows have been described by some market observers as a vote of confidence in Ethereum’s long-term utility, particularly in decentralized finance (DeFi), non-fungible tokens (NFTs), and blockchain infrastructure development.

Technical Picture: Rising Wedge Raises Caution

Despite the recent rally, technical analysts caution that Ethereum’s chart still presents risks in the short term. Since early September, ETH has been forming what appears to be a rising wedge pattern — a technical formation that often signals potential reversals. If Ethereum fails to break out of this pattern convincingly, a downturn could follow.

A break below the wedge support could drag Ethereum’s price back toward $3,200, analysts warn. This would represent a significant retracement, erasing much of the recent recovery. On the other hand, a decisive breakout to the upside could push ETH toward $4,373 and potentially $4,500 in the short term.

The Relative Strength Index (RSI), which measures momentum, is currently at 38, hovering near oversold territory. Historically, such levels have attracted speculative buying, suggesting that Ethereum could see a rebound if demand continues to pick up at these price levels.

Additionally, the Bollinger Bands indicator is widening, reflecting heightened volatility. Ethereum is currently trading close to the lower band at $3,916, which serves as a crucial near-term support. Market analysts emphasize that as long as ETH holds this threshold, upward movements remain possible. However, a breakdown below $3,916 could expose the token to further declines, with downside targets set at $3,500 and eventually $3,200.

Market Sentiment and Broader Context

Ethereum’s bounce comes at a time when broader market sentiment remains fragile. Over the past week, Bitcoin has failed to sustain gains above $65,000, while other altcoins such as Solana, Cardano, and Avalanche have all posted steep losses. This backdrop of weakness has raised concerns that the digital asset market is entering a deeper correction phase.

Yet Ethereum’s unique role within the blockchain landscape provides it with relative resilience. Beyond its role as a currency, Ethereum underpins a wide range of applications, from decentralized exchanges to layer-2 scaling solutions. This fundamental utility has often helped ETH weather downturns better than other speculative altcoins.

“Institutional investors are paying closer attention to Ethereum because it’s more than just a token; it’s an entire ecosystem,” explained a digital assets strategist. “Its staking model, development activity, and integration across DeFi make it structurally stronger than many of its competitors.”

Key Levels to Watch

Looking ahead, traders are closely monitoring several critical price levels. Immediate support rests at $3,916, followed by deeper levels at $3,500 and $3,200 if selling accelerates. On the upside, the first major resistance is at $4,373, with $4,500 considered the next milestone for bullish traders.

Should Ethereum manage to consolidate above $4,000 while overcoming the rising wedge risk, analysts believe a push toward $4,500 could materialize within the coming weeks. However, failure to hold support may result in renewed volatility and potential testing of lower zones.

Conclusion

Ethereum’s recovery above $4,000 marks an important psychological and technical victory for the asset, particularly in a market environment dominated by caution and bearish sentiment. Supported by robust staking inflows and encouraging institutional interest via ETF products, ETH has demonstrated resilience that distinguishes it from many of its peers.

That said, risks remain on the horizon. The rising wedge formation, widening volatility bands, and broader market weakness all suggest that Ethereum’s path forward may not be linear. Traders and investors will need to keep a close eye on key support and resistance levels to gauge the asset’s next major move.

For now, Ethereum’s rebound provides a reminder of the network’s enduring role at the heart of the digital asset space — a platform that continues to attract both grassroots participation and institutional adoption, even during turbulent market cycles.

Source: CMC

Writer @Erlin

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

 Check out other news and articles on Google News

Disclaimer:

The articles published on hokanews are intended to provide up-to-date information on various topics, including cryptocurrency and technology news. The content on our site is not intended as an invitation to buy, sell, or invest in any assets. We encourage readers to conduct their own research and evaluation before making any investment or financial decisions.

hokanews is not responsible for any losses or damages that may arise from the use of information provided on this site. Investment decisions should be based on thorough research and advice from qualified financial advisors. Information on HokaNews may change without notice, and we do not guarantee the accuracy or completeness of the content published.