Ethereum Dips Below $4,300—Why Analysts Say It’s Time to Buy

Ethereum stumbles—but the smart money isn't panicking. After breaching the $4,300 resistance level earlier this week, ETH pulled back sharply. Traders call it a healthy correction; skeptics call it crypto being crypto.

### The Bull Case for Buying the Dip

Technical analysts point to strong support at $3,900—a level that held firm during last month's volatility. 'This is classic profit-taking after a 30% rally,' says one hedge fund crypto lead. 'Institutional flows haven't slowed.'

### The Bear Counterargument

Macro headwinds loom. The Fed's latest taper comments sent risk assets tumbling—and ETH isn't immune. 'Crypto markets still dance to traditional finance's tune,' grumbles a veteran trader. 'Pretending otherwise is how you lose shirts.'

### The Bottom Line

Whether this dip becomes a discount or disaster hinges on one thing: Bitcoin's next move. ETH may have smart contracts, but BTC still calls the shots. Funny how decentralization works out.

Ethereum ($ETH) has fallen around 5% in the last 24 hours and is now close to $4,270. Analysts consider that this correction might be a decent opportunity to buy; moreover, $4000 and above is a great area to buy on the dip.

You don't buy during extreme highs, you buy during corrections.$ETH hit the first zone, I think we'll bounce from here, not the bottom.

To be fair, — Michaël van de Poppe (@CryptoMichNL) August 18, 2025

The correction is viewed as the initial accumulation zone, where many investors can begin purchasing again.

Technical Outlook Is Bullish for Ethereum

Ethereum’s daily Relative Strength Index (RSI) is now 58, which means the market is neutral to bullish after cooling from overheated levels. This implies that the market has run off part of its overmomentum and retained a good trend structure.

According to analysts, a decrease of ethereum to the $4,000 price level will be “an extreme opportunity for buyers.”

Although further consolidation may occur, the overall trend remains positive as long as ETH is trading above its key support levels.

Bitcoin Dominance Adds Context

Bitcoin dominance (the value of Bitcoin, divided by the total market value of all cryptocurrencies) has increased to 59.8%.

Traditionally, when Bitcoin’s dominance level exceeds 60 percent, it tends to initiate strong market rallies. Altcoins tend to increase in value if Bitcoin’s dominance drops slightly below 59.5%.

As long as the pressure on the Bitcoin dominance goes on, Ethereum and other altcoins will shift more promisingly against Bitcoin in the near future. 

Looking Ahead

To date, the critical question is how Ethereum will maintain a position above the $4,200 point. Traders will also actively seek a retreat in Bitcoin’s dominance. This type of reduction in Bitcoin dominance could potentially precondition the altcoin-based rally.

Even though the short-term uncertainty still exists, certain analysts indicate that price corrections tend to offer the most favorable buying opportunity. 

In the months to come, an additional market push towards a test of the all-time high could occur in case Ethereum redevelops the momentum.