Is Ethereum Doomed to Plunge to $3,500 After Latest $4,000 Rejection?

Ethereum faces critical resistance at the $4,000 threshold—again. The digital asset's failure to break through signals potential turbulence ahead.

Technical Breakdown

Market watchers see the $4,000 level acting like a glass ceiling. Each rejection fuels speculation about deeper corrections. The $3,500 support zone now looms large in trader conversations.

Market Psychology at Play

Repeated failures at key resistance levels create self-fulfilling prophecies. Traders get skittish—stop losses cluster just below current prices. One large sell order could trigger cascading liquidations.

Institutional Influence

Whale wallets remain relatively quiet during these rejections. Their inactivity speaks volumes—either accumulating silently or waiting for better entry points. Meanwhile, retail traders bear the emotional whipsaw.

Broader Crypto Context

Bitcoin's dominance continues shaping altcoin trajectories. When BTC stumbles, ETH often takes deeper plunges. The correlation isn't perfect—but it's strong enough to matter.

Regulatory Shadows

SEC decisions hover like storm clouds over the entire ecosystem. Each delay on ETF approvals reinforces traditional finance's skepticism—because nothing says 'mature asset class' like constant regulatory ambiguity.

Ethereum's network activity tells a different story than price action alone. Developer engagement hits new highs daily. The merge's aftermath continues delivering promised efficiencies.

Final Analysis

Short-term price predictions often miss Ethereum's fundamental resilience. Technical patterns suggest vulnerability—but chain metrics reveal robust health. Whether $3,500 becomes reality depends more on macroeconomic tides than chart patterns. After all, Wall Street still values quarterly earnings over decentralized networks—their loss.

Another $4K Rejection?

Recall that the second-largest cryptocurrency stood tall above $4,700 just a couple of weeks ago. Although it started to slip in the following days, it still maintained the $4,500 level by last Monday when all hell broke loose. In the span of just an hour or so, ETH slumped by over $400 and dumped beneath $4,100.

Following an unsuccessful recovery attempt that was quickly halted at $4,200, ethereum dumped once again. This time, it was even more violent as the asset plummeted to a multi-month low of $3,830 (on Bitstamp).

The bulls finally reminded of their presence at this point and didn’t allow a further breakdown. However, they seem to be lacking a lot of strength, as ETH has been unable to decisively overcome the critical resistance at $4,000.

If the asset indeed fails to break past this level in the following few days, the danger of a price drop to $3,500 becomes even more likely, according to Martinez.

Ethereum $ETH rejected at $4,000, raising the odds of a MOVE to $3,500. https://t.co/xWK25UhOm2 pic.twitter.com/Jfb02IPZEn

— Ali (@ali_charts) September 27, 2025

The analyst also outlined the following support lines if $3,500 falls, which are set at $3,020 and $2,772. crypto Rover warned that whales have been selling substantial portions of their ETH holdings, which could result in another price slip.

Uptober to Save ETH?

While the analysts above painted a grim picture for ETH’s future, Michael van de Poppe stood in the opposite corner. He relied on historical performance to demonstrate that Ethereum tends to rocket at the end of each year and the beginning of the next.

The markets always have a correction in September / October.

Historically, Q4 and Q1 are a great period for #Altcoins.

September is a terrible month, and that’s what we’ve seen with $ETH, it’s down nearly 10%.

Q4 is almost always positive, Q1 is the best quarter in the… pic.twitter.com/T48dzJ5ITU

— Michaël van de Poppe (@CryptoMichNL) September 27, 2025

The data shared by him shows that ETH tends to perform well in most previous Octobers, including a 42.8% surge in 2021 and an 18.5% pump in 2022.