Ethereum Drops Below $4,500: Will Price Fall Further Before Rising Again?

Ethereum (ETH) has once again lost the $4,500 mark after temporarily regaining it earlier this week, raising the possibility that the price could drop to $4,200 or even $4,000.

However, top analysts predict that any correction could spark a strong rally, with new highs above $5,000 in sight and long-term targets near $7,000 or even $10,000.

Analysts see Ethereum testing the $4,200–$4,000 support zone

BeInCrypto recently reported that ETH 's rally above $4,500 was short-lived despite Grayscale's massive Staking efforts . In the past day alone, the price has dropped 4.68%. At the time of writing, the altcoin is trading at $4,373.97.

Amid this volatility, financial research firm Fundstrat has issued a bearish short-term scenario for Ethereum. The firm's technical strategist, Mark Newton, said ETH could Dip in the next one to two days. He predicted that the asset could fall to around $4,200–$4,220.

“I am not too worried about the crypto weakness in recent days and predict ETHUSD could Dip in the next 1-2 days. ETHUSD has corrected 50% from the recent rally from September 25, but could hit $4,200-4,220, which would be the optimal support area before ETH rallies again,” Tom Lee posted, Chia Newton’s analysis.

Newton describes the current correction as a small three-wave correction following the rally from late September to early October. He expects this support level to hold, paving the way for a rally to $5,500 .

Meanwhile, Ted Pillows, a prominent investor and influencer, pointed to a lower downside target of $4,000. In a post on X, he noted that ETH is currently testing a key support zone between $4,250 and $4,350. Pillows observed significant bid activity in this area but warned that if it fails to defend, the price could slide to $4,000.

Shawn Young, Head of Analysis at MEXC Research, also told BeInCrypto that if ETH loses $4,400 support, a drop to $4,000 is likely.

“If bears regain control and push the price below $4,400, Ethereum could correct to the support zone at $4,000,” Young said.

Why Analysts See Growth Potential for Ethereum

Despite the short-term caution, experts remain optimistic about Ethereum’s future . In fact, Young notes that Ethereum’s drop to $4,000 could attract buyers, paving the way for higher highs.

He said the asset is struggling to hold above $4,500 after several weeks of consolidation. If momentum builds and liquidation conditions improve, ETH could break higher, potentially reaching $5,000 to $5,200. The analyst also noted positive structural trends shaping Ethereum's future.

“Ethereum’s strong fundamentals are starting to align back with bullish technical sentiment,” he commented.

Young explained that major network upgrades, including Fusaka and Pectra, highlight the network's flexibility in a rapidly changing market environment. This adaptability, he said, cements ETH as not just a digital asset, but also the foundation of a decentralized economy.

He also emphasized that Ethereum maintains dominance in tokenization, stablecoins, and Staking , making it a favorite choice for institutions.

“Privacy-preserving technologies will play a key Vai in attracting traditional financial institutions, corporations, and developers looking for a blockchain that balances transparency and privacy, paving the way for Ethereum’s continued on- chain innovation,” Young told BeInCrypto.

With these factors, ETH still has great growth potential, a feeling Chia by many others. Analyst Crypto Caesar predicts that ETH could reach $7,000 to $8,000 in the current bull run, which could extend to $10,000.

“But latecomers rarely catch the entire rally, and the market seems to be showing a late alt season. This rally could have another 6–8 months to go,” he commented .

So, while a short-term drop cannot be ruled out, most analysts agree that this is likely a healthy correction rather than the start of a deeper decline. In the long term, Ethereum’s strong fundamentals, growing institutional adoption, and upcoming upgrades continue to paint a bullish picture for the asset.