Ethereum fell sharply, falling more than 6% in the last 24 hours, trading nearly $4,172, the lowest level since early August. The sharp decline wiped out billions of dollars from ETH’s market capitalization, and is now close to $55 billion.
The move has sparked concern among retailers, but analysts say the reset may set the next stage of accumulation.
Poppe’s chances are around $4,000
Market analyst Michael Van de Poppe described the drop as a “market flash,” pointing to the $4,100-$4,000 range as a region where long-term buyers can intervene.
Breakdown of $eth.
As a result, we see a big flash in the market.
That’s good.
These are the first regions that scooped up a little more $eth to place itself up for the next leg. pic.twitter.com/qwmheo9uek
– Mycal Van de Poppe (@cryptomichnl) September 22, 2025
His charts show that ETH, pushing into this zone after losing short-term momentum, suggests a state in which accumulation is normally built.
Chart-level traders are watching
If Ethereum is able to stabilize and regain the high ground, the next important objective will be close to $5,766, matching the retracement target of Economist Donald Dean, with ETH to BTC ratios.
On the other hand, failing to go above $4,000 could invite deeper revisions to the $3,600-$3,800 range, with a high liquidity. A deeper decline will result in additional support levels of $2,630, $2,400, and even $2,100.
Derivative Data Signal Fallen
According to Cryptoquant, ETH’s open interest in Binance fell by about 15% since mid-September, returning to the level it last saw at the beginning of the month.
Nettaker volume has become very negative, a sign of aggressive sell-side pressure, and the funding rate for major exchanges has shifted to negative territory.
It is clear that the short positions dominate, and that many longer positions entered at a higher price are caught up in the trap. Historically, such conditions of major support are often consistent with surrender and sold conditions.
Retesting support may facilitate rebound
Donald Dean added that ETH is currently retesting a massive trading shelves of nearly $4,200. If buyers defend this band, ETH can open up a recovery pass towards $5,766.
However, if $4,000 cannot be held, traders will lower the demand zone and extend it from nearly $3,800 to mid-$3,000.
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