Why did the price of ETH fall?
Ethereum (ETH) dropped 1.3% over the past 24 hours, settling at $4,657.45. Here’s a quick look at why:
- Profit-taking after a strong rally – ETH jumped 8.45% last week, leading some traders to cash out their gains.
- Regulatory uncertainty – Delays by the SEC on Ethereum staking ETFs and new stablecoin rules in Hong Kong have created some hesitation.
- Technical resistance – ETH couldn’t break past the $4,700 level, causing a pullback.
Deep Dive
1. Profit-Taking After the Rally (Negative Impact)
What happened:
Ethereum’s price rose 84% over the last 90 days and climbed 8.45% just last week, reaching a high of $4,953 on September 12. This strong run likely encouraged traders to sell and lock in profits, especially since Bitcoin’s price dropped by 1.3% in the same 24-hour period.
Why it matters:
When prices rise quickly, it’s common for short-term investors to sell, which can cause a temporary price drop. Trading volume also fell by 20% to $33.8 billion, indicating less buying activity.
What to watch:
The $4,509 level is important—it’s a key support point. If ETH falls below this, it could lead to further losses.
2. Regulatory Challenges (Mixed Impact)
What happened:
Hong Kong is considering stricter rules for banks that hold cryptocurrencies (MEXC News). Meanwhile, the U.S. Securities and Exchange Commission (SEC) has delayed decisions on Ethereum staking ETFs, including one from BlackRock, pushing the timeline to October.
Why it matters:
These regulatory delays create uncertainty for big investors. However, there’s still strong interest in Ethereum ETFs, with $34.8 million flowing in on September 11 (Gate.io), showing ongoing demand.
3. Technical Resistance at Key Price Level (Negative Impact)
What happened:
Ethereum hit resistance near $4,743 but couldn’t break through. Technical indicators like the MACD show weakening momentum, dropping from +53.06 in July to +14.58 now.
Why it matters:
This suggests traders are cautious, and the price might continue to fall. The RSI (Relative Strength Index) at 61.86 means ETH isn’t oversold yet, so there’s room for more downside.
Key level:
If ETH falls below $4,509, the next support to watch is $4,404.
Conclusion
Ethereum’s recent price drop is a natural pullback after a big rally, made worse by regulatory delays and technical hurdles. The big question now is whether ETH can hold above $4,509 support or if large sell-offs—like the recent transfer of 9,840 ETH to Kraken exchange—will push prices lower. Keep an eye on SEC updates about ETFs and Bitcoin’s market dominance (currently 56.82%), as shifts there can impact Ethereum and other altcoins.
What could affect the price of ETH?
Ethereum’s price is balancing between upcoming upgrades and market doubts.
- Fusaka Upgrade (Positive) – A major scalability update expected in November 2025 could boost usage.
- Whale Buying (Positive) – Big investors bought $544 million worth of ETH in August.
- Staking ETF Delays (Negative) – The SEC is holding off on approving BlackRock’s ETH staking fund.
- Tokenization Competition (Mixed) – Ethereum leads in real-world asset tokenization but faces low-cost competition from Solana.
In-Depth Look
1. Fusaka Upgrade & Execution Layer Improvements (Positive Outlook)
What’s happening:
Ethereum’s Fusaka upgrade, planned for November 2025, aims to increase the gas limit (up to 150 million), support multiple Ethereum Virtual Machines (EVMs) running in parallel, and speed up block times. Recent test networks like Devnet-3 showed the ability to handle 19,200 transactions per second (TPS).
Why it matters:
Higher transaction capacity can attract fast-paced decentralized finance (DeFi) apps and institutional projects involving real-world assets (RWA). This also means more ETH gets “burned” (removed from circulation) through a process called EIP-1559, which can support price growth. Past upgrades, like the Dencun update in March 2024, led to a 45% increase in ETH’s price within two months.
2. Big Investors Buying vs. Staking ETF Delays (Mixed Impact)
What’s happening:
In August, institutions such as BitMine bought 147,590 ETH (worth $544 million) through over-the-counter (OTC) deals. Meanwhile, the U.S. Securities and Exchange Commission (SEC) is delaying decisions on staking ETFs, including BlackRock’s ETHA fund.
Why it matters:
Large purchases reduce the amount of ETH available on exchanges (only 11.7% remains), which could create upward price pressure. However, the delay in approving staking ETFs means about $1.2 billion in potential institutional investment remains on the sidelines. If approved, these ETFs could have a big impact, similar to how Bitcoin ETFs boosted BTC’s price by 74% in 2024.
3. Tokenization Battle & Layer 1 Competition (Mixed Impact)
What’s happening:
Ethereum currently hosts 74% of tokenized assets, valued at $7.72 billion. However, Solana offers much lower transaction fees ($0.001) and faster speeds (up to 50,000 TPS), attracting developers.
Why it matters:
Ethereum’s early lead in tokenizing real-world assets, with partners like BlackRock and Franklin Templeton, creates steady demand. But if Ethereum can’t scale its base layer (Layer 1) effectively, it risks losing ground to faster, cheaper alternatives like Solana. Since May 2025, Solana’s DeFi total value locked (TVL) grew 112%, compared to Ethereum’s 28%.
Conclusion
Ethereum’s path in 2025 depends on successfully rolling out the Fusaka upgrade while navigating regulatory delays and competition from other blockchains. Keep an eye on the SEC’s ETF decision expected in October and the results from Fusaka’s Sepolia testnet. The key question: can Ethereum’s staking rewards (~4.1%) and ETH burning offset Solana’s speed and low fees?
What are people saying about ETH?
Ethereum’s price talk is swinging between hopes of new all-time highs and cautious warnings. Here’s what’s trending right now:
- Big investors (whales) aiming for $6,000 as ETH nears record prices
- Bearish signals suggest a possible price pullback
- Excitement around ETF staking faces technical hurdles
Deep Dive
1. @CryptoMinuteAI: Liquidations spike near $4,000 – bearish
“Ethereum’s price approaching $4,000 triggered $400M liquidations”
– @CryptoMinuteAI (1.2M followers · 2.8M impressions · 2025-08-08 15:09 UTC)
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What this means: If Ethereum can’t hold above $4,000, traders using borrowed money (leverage) might be forced to sell, increasing downward pressure on the price.
2. @arbitrum: Pectra upgrade boosts ETF staking excitement – bullish
“Pectra is imminent on Arbitrum”
– @arbitrum (950K followers · 4.1M impressions · 2025-06-18 06:03 UTC)
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What this means: The upcoming Pectra upgrade will allow people to stake smaller amounts of Ethereum (1 ETH validator tickets), which could encourage more participation and reduce the amount of ETH available to trade, potentially pushing prices up.
3. @mkbijaksana: Price rejection at $5,000 – mixed signals
“ETH failed to break $5,000 resistance… bearish divergence in RSI concerning”
– @mkbijaksana (320K followers · 890K impressions · 2025-08-27 01:28 UTC)
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What this means: Ethereum’s price momentum is weakening even though the overall trend remains positive. This mixed signal means caution is advised.
Conclusion
The outlook for Ethereum is mixed. On one hand, big investors are adding to their holdings (ETF inflows have reached $19 billion this year). On the other hand, technical indicators like the RSI (Relative Strength Index) at 68 suggest the price might be overextended. Keep an eye on the $4,900–$5,000 range: closing above this could spark a buying frenzy, while failing to break through might lead to a drop toward $4,400. The big question remains—will Ethereum’s reputation as “ultrasound money” keep driving demand, or will traders grow tired and step back?
What is the latest news about ETH?
Ethereum is gaining momentum thanks to new institutional investments and changes in regulations. Here’s what’s driving ETH’s recent moves:
- Ethereum Breaks Above $4,500 (September 12, 2025) – A technical breakout and increased buying from institutions are pushing prices higher.
- Hong Kong Loosens Crypto Banking Rules (September 11, 2025) – Banks holding ETH may face lower capital requirements, signaling regulatory support.
- BitMine Buys $204 Million in ETH (September 12, 2025) – The company aims to control 5% of Ethereum’s supply through strategic purchases.
In-Depth Analysis
1. Ethereum Breaks Above $4,500 (September 12, 2025)
Summary: On September 12, ETH surged past $4,500, reaching a 2025 high of $4,516, up 3.7% for the day. This rally followed a breakout from a downward trend, supported by key moving averages and a rising momentum indicator (RSI at 58). Data shows $34.8 million flowed into Ethereum on September 11, reversing outflows from August. BitMine’s $204 million purchase highlights strong institutional interest.
What this means: This price action is positive for Ethereum, with $4,300 acting as support and resistance expected around $4,550 to $4,600. If ETH closes above $4,550, it could push toward $5,000, though some investors might take profits near these highs. Keep an eye on ETF developments—while the SEC delayed BlackRock’s staking ETF, October remains a key month for potential approval (Gate.io).
2. Hong Kong Loosens Crypto Banking Rules (September 11, 2025)
Summary: Hong Kong’s financial regulator proposed easing capital requirements for banks holding cryptocurrencies like Ethereum, starting in 2026. If issuers have strong risk management, ETH holdings could be treated as lower risk, differing from stricter international Basel standards.
What this means: This is somewhat positive, as clearer rules may encourage traditional banks to get involved with crypto. However, strict licensing for stablecoin issuers and redemption rules could slow growth in the near term. This move supports Hong Kong’s goal to become a crypto hub but faces competition from cities like Singapore and Dubai (MEXC).
3. BitMine Buys $204 Million in ETH (September 12, 2025)
Summary: BitMine announced a $204 million purchase of Ethereum, increasing its holdings to 833,137 ETH (worth about $3.9 billion). The company plans to control 5% of Ethereum’s total supply through staking and strategic buying, similar to SharpLink Gaming’s $717 million ETH treasury.
What this means: This is a strong long-term positive, as more corporate demand reduces the amount of ETH available on the market. Public companies now hold over 1 million ETH (around $4.8 billion). However, there are risks of centralization since the top 10 holders control about 22% of Ethereum’s supply. ETF delays, like BlackRock’s staking ETF, remain challenges, but institutional interest is growing (Gate.io).
Conclusion
Ethereum’s technical strength, regulatory progress, and growing institutional interest suggest a bullish outlook. However, delays in ETF approvals and volatility from large holders mean caution is still needed. With ETH’s market dominance at 13.86% and the altcoin season index rising to 72/100, the key question is whether Ethereum can keep up its momentum against Bitcoin’s 56.73% market share. Watch the $4,550 resistance level and upcoming ETF decisions in October for clues on where ETH is headed.
What is expected in the development of ETH?
Ethereum’s development is moving forward with these key upgrades:
- Danksharding (Q4 2025) – Makes Layer 2 (L2) transactions much cheaper by using special data blobs
- Single-Slot Finality (2026) – Blocks become final instantly, replacing the current 15-minute wait
- Quantum Resistance (2026+) – Adds protection against future quantum computer attacks
- Stateless Clients (2027) – Lets nodes run with much less storage, making the network more accessible
- EVM 2.0 (2028) – Upgrades Ethereum’s virtual machine to support faster proofs and better privacy
Deep Dive
1. Danksharding (Q4 2025)
What is it?
Danksharding introduces “blob-carrying transactions” that dedicate block space specifically for L2 rollup data. This can cut L2 transaction costs by about 90%. Right now, L2s like Arbitrum pay around $0.20 per transaction, while Ethereum mainnet fees are about $2.50.
Why it matters
Good news: This could speed up L2 adoption, which already handles 80% of Ethereum’s daily transactions, and reduce the amount of ETH burned from transaction fees (currently about 1,500 ETH per day).
Potential challenge: The upgrade depends on a new data sampling method (PeerDAS) being fully tested by late 2025 (EthRoadmap).
2. Single-Slot Finality (2026)
What is it?
Currently, Ethereum blocks take about 15 minutes to be considered final and irreversible. Single-Slot Finality will make block confirmation instant by allowing validators to quickly agree on blocks using cryptographic methods.
Why it matters
Good news: This removes risks of blockchain reorganizations, which is great for exchanges and decentralized finance (DeFi) apps.
Consideration: It requires 90% of validators (over 1.2 million) to upgrade, which is a big coordination effort (ETHGlobal Metrics).
3. Quantum Resistance (2026+)
What is it?
Ethereum will replace its current cryptography (ECDSA) with quantum-resistant algorithms like STARKs and Winternitz signatures. This protects wallets and transactions from future quantum computer attacks.
Why it matters
Good news: This helps avoid a potential $500 billion+ security risk if quantum computers break current cryptography.
Possible downside: The transition might make wallet use more complicated for some users (Ethereum Foundation).
4. Stateless Clients (2027)
What is it?
Stateless clients allow Ethereum nodes to verify transactions without storing the entire blockchain state, reducing storage needs from over 2 terabytes to about 50 gigabytes. This uses a technology called Verkle trees to compress data proofs.
Why it matters
Good news: This lowers the barrier to running a node, potentially doubling the number of active nodes (currently around 12,000).
Potential challenge: Early tests show block validation could be 10-15% slower (EthResearch).
5. EVM 2.0 (2028)
What is it?
EVM 2.0 is a major upgrade to Ethereum’s execution environment, adding native support for zero-knowledge (ZK) proofs. This enables faster transaction verification and privacy-focused smart contracts.
Why it matters
Good news: This positions Ethereum as a strong platform for institutional DeFi projects, like BlackRock’s BUIDL fund.
Consideration: The upgrade might cause some temporary fragmentation in developer tools during the transition (Binance Research).
Conclusion
Ethereum’s roadmap focuses on improving scalability (Danksharding), security (quantum resistance), and decentralization (stateless clients) through 2030. With Layer 2 solutions now settling over $40 billion per month and weekly ETF inflows of $727 million (CMC Data), these upgrades aim to make Ethereum the go-to platform for global value transfer.
Imagine if Layer 2 networks collectively surpass Visa’s 65,000 transactions per second by 2030—what would that mean for Ethereum’s future?
What updates are there in the ETH code base?
Ethereum recently updated its software to prepare for the Fusaka hard fork and improve overall network performance.
- Fusaka Fork Prep (August 2025) – Introduced EIP-7825 (limits on gas per transaction) and EIP-7934 (limits on block size).
- Gas Limit Increase (June 2025) – Raised the default gas limit per block to 45 million to handle more transactions.
- Path-Based Archive Nodes (v1.16.0) – Cut storage needs significantly by using new data indexing methods.
Deep Dive
1. Fusaka Fork Preparation (August 2025)
Overview
The Fusaka hard fork, planned for late 2025, brings important updates to Ethereum’s protocol. The Geth client version 1.16.3 includes two key changes: EIP-7825, which caps the amount of gas a single transaction can use, and EIP-7934, which limits the size of blocks encoded in RLP format.
What this means
These changes help protect the network from spam attacks and make block processing more consistent, which improves overall stability. However, developers and node operators need to update their software before the fork to avoid synchronization problems. (Source)
2. Gas Limit Expansion (June 30, 2025)
Overview
Following community agreement, Ethereum clients like Geth v1.16.0 and Nethermind 1.32.0 increased the default gas limit per block from about 30 million to 45 million.
What this means
While this change doesn’t immediately impact Ethereum’s price, it allows more transactions per block, which can improve the experience on Layer 2 solutions over time. Validators should keep an eye on their hardware performance as the network handles more data. (Source)
3. Path-Based Archive Nodes (v1.16.0)
Overview
The new path-based archive mode in Geth (released July 2025) drastically reduces storage requirements for full historical data—from about 20 terabytes down to 1.9 terabytes—by using reverse diffs and a state index.
What this means
This makes running archive nodes more affordable and accessible, supporting Ethereum’s decentralization goals. However, it limits support for the eth_getProof function to only the most recent 128 blocks. Node operators can now use slower, cheaper hard drives instead of expensive SSDs for storing old blockchain states. (Source)
Conclusion
Ethereum’s recent updates focus on scaling the network (Fusaka), improving efficiency (gas limit increase), and making data access easier (archive nodes). These changes support Ethereum’s roadmap to grow while maintaining reliability. A key question remains: how will Layer 2 solutions adjust to the new gas limits introduced by Fusaka?