Why did the price of ETH fall?
Ethereum (ETH) dropped 8.37% to $3,836 in the last 24 hours, underperforming the overall crypto market, which fell 5.14%. The main reasons for this decline are:
- Leverage unwinding – $500 million worth of ETH long positions were liquidated after the price fell below the $4,000 support level.
- ETF outflows – Investors pulled $25.8 million worth of ETH from exchange-traded funds (ETFs) amid a cautious market mood.
- Macro concerns – The Federal Reserve’s hawkish stance and stock market sell-offs affected the crypto market.
Deep Dive
1. Cascading Liquidations (Negative Impact)
What happened: When ETH’s price dropped below $4,000, it triggered the largest wave of liquidations in the crypto market since August 2025. A total of $1.5 billion in positions were wiped out across derivatives markets, impacting over 407,000 traders, including big investors like Machi Big Brother, who lost $6.16 million on PUMP positions.
Why it matters: The $4,000 price point was a key psychological support level. When it broke, many stop-loss orders and margin calls were triggered, pushing prices down further. The futures funding rate for ETH turned negative (-0.00035835%), indicating that bearish bets were dominating.
What to watch: The $3,700 to $3,800 range is critical, as it aligns with the 100-day simple moving average (SMA) and a pivot point. If ETH falls below this zone, it could slide further toward $3,500.
2. Institutional Pullback (Mixed Impact)
What happened: Ethereum ETFs experienced $25.85 million in net outflows on September 24, ending a 12-week streak of inflows. For example, Fidelity’s ETHA ETF alone saw a withdrawal of 7,986 ETH (about $31.7 million), according to Bitget data.
Why it matters: Although ETFs still hold a large amount of ETH (6.3 million ETH, valued at $24.2 billion), the recent outflows suggest some investors are taking profits after ETH’s strong 59% rally over the past 90 days. However, demand remains steady, as BitMine added 373,000 ETH (worth $1.45 billion) to its holdings this month.
3. Macro Headwinds (Negative Impact)
What happened: Federal Reserve Chair Jerome Powell’s comments about “highly valued” stocks and the possibility of delayed interest rate cuts unsettled investors. The crypto Fear & Greed Index dropped to 41 (Neutral), down from 51 last week.
Why it matters: Crypto’s price movement is closely linked to the Nasdaq stock index, which fell 0.95% on September 24. Investors reduced their risk exposure, and rising U.S. Treasury yields (4.35% for the 10-year note) added pressure on growth assets like Ethereum.
Conclusion
Ethereum’s recent price drop is due to a combination of technical breakdowns, forced selling of leveraged positions, and broader market risk aversion. Despite this, the Ethereum network remains strong, with 1.7 million daily transactions. Traders should keep an eye on upcoming U.S. Purchasing Managers’ Index (PMI) data and ETF flows for signs of market stabilization.
Key level to watch: Can Ethereum hold the $3,800 support area, which includes the 200-day exponential moving average (EMA) and the Volume Profile Point of Control (POC), to avoid further declines?
What could affect the price of ETH?
Ethereum’s price depends on upcoming upgrades, staking trends, and competition in tokenized assets.
- Fusaka Upgrade Coming Soon – This update aims to make Ethereum faster and more scalable, encouraging more apps to use it.
- Staking Challenges – Solo stakers are earning less, which could lead to more control by big staking pools.
- Tokenization Leadership – Ethereum controls 55% of the $270 billion real-world asset (RWA) market, but competitors are catching up.
In-Depth Look
1. Protocol Upgrades & Scalability (Mixed Outlook)
What’s Happening: The Fusaka upgrade, expected on December 3, 2025, will introduce a feature called PeerDAS to increase data capacity by 10 times, targeting over 12,000 transactions per second (TPS) by 2026. This builds on the earlier Pectra upgrade, which improved validator limits and wallet features. However, developers are also focusing on the Glamsterdam upgrade in 2026, which might delay Fusaka’s testing.
Why It Matters: If scaling works well, transaction fees (gas fees) could drop, attracting more decentralized apps (dApps). But delays or technical issues could shake confidence in Ethereum’s future. Past upgrades like The Merge have caused short-term price swings but supported long-term growth.
2. Staking Trends & Centralization Risks (Potential Downside)
What’s Happening: Solo stakers—individuals who validate transactions—are seeing lower profits because of competition from liquid staking services like Lido, which controls 54% of staked ETH. Models suggest that if Ethereum reduces new ETH issuance, solo validators might be pushed out, concentrating power in a few large pools.
Why It Matters: More centralization could weaken Ethereum’s security and trust, which are key to its value. If staking rewards fall below 3%, institutional investments in Ethereum ETFs (which currently hold $23 billion) might slow down.
3. Tokenization & Real-World Asset (RWA) Competition (Positive Outlook)
What’s Happening: Ethereum currently hosts 55% of tokenized real-world assets, including BlackRock’s $2.5 billion BUIDL treasury fund. However, competitors like Solana and Polygon are gaining ground, especially in tokenizing stocks (for example, eToro’s stock tokens).
Why It Matters: Ethereum’s early lead gives it a strong position, but if it can’t keep fees low and maintain high speed, it risks losing market share. Success in this area could tie Ethereum’s value to trillions of dollars in tokenized assets.
Conclusion
Ethereum’s price will likely be influenced by how well it balances faster scaling with keeping staking decentralized, while holding onto its lead in tokenized real-world assets. The $3,800 to $4,200 price range is a key support level—falling below it could trigger sell-offs. Watch for Fusaka’s testnet results on October 28 and inflows into ETH ETFs for early signs.
Will Ethereum’s reputation as “ultra-sound money” hold if growth in tokenized real-world assets slows?
What are people saying about ETH?
Ethereum buzz mixes excitement over tech upgrades with careful attention to key price levels. Here’s what’s trending:
- Positive social sentiment is three times stronger than Bitcoin’s
- $4,500 price level is a critical point for Ethereum’s next move
- Big investors (whales) are buying more ETH, showing confidence
- ETH/BTC ratio suggests a possible rise in Ethereum compared to Bitcoin
- $4,000 support line is a test for traders’ confidence
Deep Dive
1. Bullish Social Sentiment Peaks
According to @santimentfeed, Ethereum is getting three positive mentions for every negative one—three times Bitcoin’s ratio. Retail investors’ excitement is at its highest since the 2021 bull run.
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What this means: This is a good sign for Ethereum, similar to conditions before a big price jump in April 2021. However, very high optimism can sometimes lead to short-term price drops.
2. The $4,500 Resistance Level
@formanite602 points out that if Ethereum’s price goes above $4,500, it could signal a strong upward move. If it fails to break this level, traders might expect a short-term price drop. Right now, $4,250 is a key support level before a possible fall to $4,000.
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What this means: Traders are watching closely. A break above $4,500 could push prices toward $4,800, while a rejection might test support near $3,900.
3. Whale Accumulation Signals Confidence
A CoinMarketCap community post reports that large Ethereum holders (whales) added over 176,000 ETH (worth about $463 million) between June 28 and July 4. Additionally, SharpLink Gaming raised $64 million to buy ETH for its treasury.
What this means: This shows strong long-term confidence from big investors, similar to Bitcoin’s accumulation phase in 2020-2021.
4. ETH/BTC Ratio Indicates Potential Growth
@VirtualBacon0x notes that the ETH/BTC ratio bounced off a support level of 0.038. If it breaks above 0.042, Ethereum could surge 60% compared to Bitcoin, especially as Bitcoin’s tightening measures pause and interest in alternative coins (altseason) grows.
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What this means: While the ratio is still far below its 2021 peak, the recovery suggests investors might be shifting funds from Bitcoin to Ethereum.
5. $4,000 Trendline Is a Key Support
@AkaBull_ highlights a crucial upward trendline at $4,000. If Ethereum’s price falls below this, it could lead to a deeper correction down to $3,600. Holding above $4,000 keeps the path open toward $4,800.
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What this means: There’s a risk of price drops here. About 14% of Ethereum futures contracts (worth $15.4 billion) are near this level, which could trigger forced selling if support breaks.
Conclusion
The overall outlook for Ethereum is cautiously optimistic. Strong fundamentals like institutional buying and growth in Layer 2 solutions support the bullish case. However, technical resistance around $4,500 is a hurdle to watch. Social sentiment and treasury buying echo past bull market patterns, but traders are focused on the $4,000 to $4,500 range for clear direction. Keep an eye on CME ETH futures open interest, which reached $17 billion on September 24. A move above or below this range could lead to bigger price swings due to options market dynamics.
What is the latest news about ETH?
Ethereum is balancing growing interest from big investors and important technology upgrades, while also dealing with a $1.5 billion market shakeup. Here’s what’s happening:
- Gate Launches Fast Layer 2 Solution (September 25, 2025) – Gate Layer aims to cut fees and speed up Ethereum apps.
- SEC Approves Multi-Asset ETF (September 24, 2025) – Hashdex’s ETF includes Ethereum (ETH), XRP, and SOL under new U.S. rules.
- Market Volatility Causes Major Liquidations (September 24, 2025) – ETH dropped below $4,000 as leveraged positions were forced to close.
In-Depth Look
1. Gate Launches Fast Layer 2 Solution (September 25, 2025)
What happened:
Gate.io introduced Gate Layer, a new Layer 2 (L2) network compatible with Ethereum. It uses OP Stack technology and aims to handle 5,700 transactions per second (TPS) with fees 30 to 60 times cheaper than competitors like Base or Solana. It also connects with LayerZero to allow easy swaps between different blockchains. Gate Layer is launching three main products: a decentralized exchange (DEX) for perpetual contracts, a platform to create tokens without coding, and a tool to track meme coins.
Why it matters:
This new L2 could attract developers looking for cheaper and faster Ethereum-compatible environments, which may increase Ethereum’s use as the main settlement layer. However, it faces competition from established L2s like Arbitrum, so its immediate impact might be limited.
(Gate.io)
2. SEC Approves Multi-Asset ETF (September 24, 2025)
What happened:
The U.S. Securities and Exchange Commission (SEC) approved Hashdex’s exchange-traded fund (ETF) that includes Ethereum (ETH), XRP, and SOL. This is the first U.S. ETF to include XRP, which had been in a regulatory gray area. The approval came under new SEC rules designed to speed up the process.
Why it matters:
This approval makes it easier for institutional investors to access Ethereum and other assets. However, including riskier coins like SOL might limit demand. Ethereum’s strong position in stablecoins (72% market share) and real-world asset tokenization could attract renewed interest.
(Bitget)
3. Market Volatility Causes Major Liquidations (September 24, 2025)
What happened:
Ethereum’s price dropped 9% to $4,075 due to uncertainty around Federal Reserve policies and large investors selling off. This triggered $500 million in liquidations of leveraged ETH positions. Big holders also sold ETH and meme coins, increasing losses for traders using borrowed funds.
Why it matters:
Although ETH bounced back to $3,880, this sell-off shows how sensitive Ethereum is to broader economic risks. Data from derivatives markets indicates traders are now watching the $4,000 price level closely as a key point for forced sell-offs.
(Bitget)
Conclusion
Ethereum’s network is growing with new Layer 2 technology and regulatory approvals, but economic uncertainty and market swings create short-term challenges. The big question is: Will institutional investments through ETFs balance out the selling pressure from retail traders in the last quarter of the year?
What is expected in the development of ETH?
Ethereum’s development plan is focused on improving scalability, security, and decentralization through these key updates:
- Fusaka Upgrade (Dec 3, 2025) – Doubles Layer 2 data capacity using PeerDAS technology.
- Account Abstraction (Q4 2025) – Adds native support for smart contract wallets.
- Stateless Clients (2026) – Cuts node storage needs by over 90%.
- Quantum Resistance (2026 and beyond) – Prepares encryption to defend against future quantum computer threats.
In-Depth Look
1. Fusaka Upgrade (Dec 3, 2025)
What it is: The Fusaka hard fork will activate Peer Data Availability Sampling (PeerDAS), increasing Ethereum’s data capacity from 6 to 14 blobs per block. This allows Layer 2 solutions like Arbitrum and Base to handle around 12,000 transactions per second (CryptoGucci).
Why it matters: This upgrade could lower Layer 2 transaction fees by 40–60%, making decentralized finance (DeFi) apps and other decentralized applications (dApps) more affordable and attractive. However, there’s a chance of delays in testing phases scheduled for October.
2. Account Abstraction (Q4 2025)
What it is: EIP-7702 lets regular wallets temporarily act like smart contracts. This enables features like gas-free transactions, batch operations, and easier wallet recovery—all without needing extra software layers (Ethereum.org).
Why it matters: This improves the user experience for over 98 million wallets, making Ethereum more accessible. Adoption depends on exchanges and apps supporting this new standard, so the impact could range from neutral to positive.
3. Stateless Clients (2026)
What it is: Stateless clients verify transactions without storing the entire blockchain history, reducing storage needs from about 20 terabytes to under 2 terabytes. This makes it easier for more people to run validator nodes, supporting decentralization (Ethresear.ch).
Why it matters: More participants running nodes strengthens Ethereum’s network security and decentralization. However, this relies on advanced zero-knowledge proof technology that is still being tested.
4. Quantum Resistance (2026 and beyond)
What it is: The “Ethereum Lean Plan” aims to replace current cryptographic signatures with quantum-safe alternatives like STARKs. This prepares Ethereum to resist attacks from future quantum computers (CoinMarketCap).
Why it matters: While this won’t have an immediate effect, it’s crucial for long-term security and institutional trust. There may be challenges ensuring compatibility with existing smart contracts.
Conclusion
Ethereum’s roadmap balances short-term improvements in scalability and user experience with long-term upgrades that strengthen security and decentralization. By focusing on Layer 2 efficiency and making it easier for validators to participate, Ethereum aims to remain a leading platform for Web3 applications.
How will Ethereum’s evolving security model affect its competition with Solana and Bitcoin in institutional investment portfolios?
What updates are there in the ETH code base?
Ethereum’s software received major updates in 2025, focusing on making the network faster, more efficient for nodes, and more flexible for validators.
- Gas Limit Increase (June 30, 2025) – Validators now use a default gas limit of 45 million, allowing more transactions per block.
- History Pruning (July 9, 2025) – Nodes automatically delete old blockchain data from before the Merge, saving 300-500 GB of storage.
- Fusaka Upgrade (December 3, 2025) – Introduces PeerDAS and 12 Ethereum Improvement Proposals (EIPs) to potentially double Layer-2 scalability.
Deep Dive
1. Gas Limit Increase (June 30, 2025)
What happened: Ethereum clients like Geth v1.16.0 and Nethermind 1.32.0 now default to a gas limit of 45 million per block, up from around 30 million. Gas limit controls how many transactions fit into each block. This update lets the network handle about 10-15% more transactions per block, helping reduce congestion during busy times.
Why it matters: This is good news for Ethereum (ETH) because it supports more activity in decentralized finance (DeFi) and non-fungible tokens (NFTs) without raising transaction fees too much. (Source)
2. History Pruning (July 9, 2025)
What happened: Ethereum clients now automatically remove blockchain data from before the Merge (which happened in September 2022). This reduces the storage space needed by 300 to 500 gigabytes for nodes.
Why it matters: While this doesn’t directly affect ETH’s price, it makes running a node easier and cheaper. More people running nodes means better network health and decentralization. (Source)
3. Fusaka Upgrade (December 3, 2025)
What happened: The Fusaka hard fork will activate on Ethereum’s mainnet after testing on testnets (Holešky on October 1 and Sepolia on October 14). It introduces PeerDAS, a system for decentralized data sampling, and increases the number of data blobs per block from 6 to 14. This upgrade aims to boost Layer-2 transaction speeds to over 12,000 transactions per second by 2026. Additional updates after activation will further increase these limits.
Why it matters: This upgrade is positive for ETH because it could encourage more use of Layer-2 solutions, which help reduce fees and improve scalability. This makes Ethereum more attractive for developers building decentralized apps (dApps). (Source)
Conclusion
Ethereum’s 2025 updates focus on improving scalability and node efficiency, with the Fusaka upgrade set to significantly enhance Layer-2 performance. While the immediate impact on ETH’s price is uncertain, these changes strengthen Ethereum’s infrastructure for wider adoption. The big question is how Fusaka’s increased data capacity will transform the rollup ecosystem by 2026.