ETH Price Prediction: Will Ethereum Break Through $4,000 Resistance Barrier?

#ETH

• ETH trades below key moving average at $4,110, facing technical resistance
• Mixed fundamentals with institutional demand offset by security concerns and governance debates
• Bollinger Band analysis suggests range-bound trading between $3,536 and $4,685 in near term

ETH Price Prediction

Technical Analysis Shows ETH Faces Resistance at Key Levels

According to BTCC financial analyst John, Ethereum's current price of $3,856.92 sits below the 20-day moving average of $4,110.99, indicating potential short-term bearish pressure. The MACD reading of 338.56 versus 212.75 shows bullish momentum remains, though the Bollinger Band positioning suggests resistance NEAR the $4,685 upper band with support around $3,536.

Mixed Market Sentiment as Institutional Demand Battles Technical Resistance

BTCC financial analyst John notes that while institutional accumulation and Ethereum's ongoing development provide fundamental support, recent exploits and governance concerns create headwinds. The market appears divided between technical resistance near $4,100 and optimistic long-term scaling solutions through LAYER 2 developments.

Factors Influencing ETH's Price

Bunni DEX Shuts Down Following $8.4M Exploit, Citing Insufficient Funds for Relaunch

Decentralized exchange Bunni has ceased operations after suffering an $8.4 million exploit in early September, marking the second crypto project to collapse this week amid mounting challenges in the DeFi sector. The attack drained funds across ethereum and Unichain, forcing the team to halt development due to insufficient capital for security overhauls.

Bunni's v2 smart contracts have been open-sourced under the MIT License, offering other developers the opportunity to repurpose its technology. The team emphasized that relaunching securely WOULD require prohibitively expensive audits and monitoring solutions—costs they cannot bear.

The exploit, executed on September 2, exploited vulnerabilities in the protocol's codebase. Built on Uniswap v4, Bunni had aimed to optimize liquidity provider returns before the breach derailed its trajectory.

Paxos CEO Frames $300 Trillion PYUSD Minting Error as Blockchain Transparency Win

Paxos CEO Charles Cascarilla reframed a staggering operational error as a demonstration of blockchain's core strength. The accidental creation of 300 trillion PYUSD tokens—more than twice global GDP—became a case study in real-time financial transparency during Wednesday's Federal Reserve crypto roundtable.

The Ethereum-based stablecoin incident, caused by a manual processing lapse, saw erroneous tokens immediately burned in an inaccessible wallet. "This underscores blockchain's value," Cascarilla asserted. "The system provided instant visibility—exactly what traditional finance lacks."

While acknowledging Paxos' failure to follow standard procedures, the CEO weaponized the mishap as proof of concept. The event coincides with Paxos' OCC charter review, turning regulatory scrutiny into an unexpected showcase for on-chain accountability.

Institutional Demand Fuels Ethereum's Rally as $4,100 Resistance Holds

Ethereum is regaining institutional momentum after a two-week slump, with major funds and asset managers increasing exposure. Bitmine Immersion Technologies notably acquired $251 million worth of ETH, expanding its holdings to 3 million tokens valued at $13 billion.

BlackRock's clients added $41.91 million to Ethereum positions, underscoring growing institutional adoption. The asset's breakout from a descending trendline aligns with gold's rally, exhibiting a 0.7 correlation in Q3 2025—driven by ETF inflows and DeFi expansion.

On-chain data reveals accelerating ETH accumulation, with wallets moving tokens off exchanges for long-term holding. Ethereum's infrastructure utility is being recognized beyond speculation, particularly post-Merge, as its energy efficiency meets ESG investment criteria.

Technically, ETH tests the crucial $4,100-$4,440 resistance zone. Market structure suggests institutional players are treating Ethereum as a Core holding rather than a tactical trade.

Ethereum to Implement Transaction Gas Limit in Fusaka Upgrade

The Ethereum Foundation has confirmed the introduction of a protocol-level gas limit for individual transactions in the upcoming Fusaka hard fork. Capped at 16,777,216 gas (2²⁴), EIP-7825 marks Ethereum's first per-transaction limit separate from block gas constraints. The change, already active on testnets Holesky and Sepolia, aims to curb denial-of-service risks and improve block predictability ahead of parallel execution upgrades.

Toni Wahrstätter of the Ethereum Foundation stated the cap forces large transactions exceeding 16.78 million gas to be split into sequenced calls. While not altering block gas limits, the measure addresses historical issues where oversized transactions could consume nearly full block capacity (approximately 45 million gas), creating operational challenges for network validators.

Understanding Layer 2 Blockchain Solutions and Their Role in Ethereum Scalability

Layer 2 blockchains have emerged as a critical component of the Ethereum ecosystem, designed to onboard new users and drive mass adoption of blockchain technology. These secondary networks operate atop LAYER 1 chains like Ethereum, processing transactions off-chain before settling results on the mainnet. By doing so, they address the scalability trilemma—offering faster transactions and lower fees without compromising security.

The symbiotic relationship between Layer 1 and Layer 2 is foundational. While Ethereum provides the bedrock of security and consensus, Layer 2 solutions handle the heavy computational lifting, enabling thousands of transactions per second. This division of labor allows decentralized applications to flourish while maintaining the integrity of the underlying blockchain.

Compatibility remains seamless: users interact with Layer 2 networks as they would with Ethereum, executing token transfers or smart contracts. The magic lies in the off-chain processing, where transactions are batched and verified before being anchored to Layer 1—a architectural innovation that could redefine blockchain's mainstream viability.

BitMine Aggressively Accumulates ETH Amid Market Downturn

BitMine Immersion Technologies has continued its aggressive accumulation of Ether, purchasing an additional $250 million worth of ETH this week from exchanges Bitgo and Kraken. This marks the company's fourth major acquisition since the October 10 market crash, bringing its total holdings to approximately 3.17 million ETH—worth roughly $1.74 billion at current prices.

The firm's chairman, Tom Lee, remains bullish on crypto's long-term prospects, stating, "We're at the basement and working our way back up." BitMine's rapid accumulation—from 163,000 ETH in July to over 3.24 million today—positions it to control 2.6% of ETH's total supply, halfway toward its stated 5% target.

Notably, this institutional buying spree contrasts with Bitcoin treasuries' relative inactivity. If maintained, BitMine's pace could reshape ETH's circulating supply dynamics within months.

Ex-Ethereum Developer's Resurfaced Letter Reignites Debate Over Foundation's Governance

Péter Szilágyi, former lead developer of Ethereum's Geth client, has publicly criticized the Ethereum Foundation's organizational structure in a May 2024 letter. The document alleges systemic issues with compensation, governance, and undue influence from co-founder Vitalik Buterin.

Szilágyi claims a stark contrast between his public portrayal as a key leader and private marginalization. The Foundation allegedly dismissed his input despite publicly championing Ethereum's decentralized values. Compensation structures reportedly failed to adequately reward CORE contributors.

The most damning accusation centers on Buterin's outsized influence. "Vitalik became a victim of his own success," Szilágyi wrote, arguing the co-founder's attention and investments effectively determine which Ethereum projects thrive. This contradicts Ethereum's purported decentralization ethos.

Ethereum Price Faces Rejection Near Resistance Zone — Risk Of Deeper Correction Rises

Ethereum's recovery attempt faltered near the $4,050 resistance level, sparking concerns of a deeper pullback. The second-largest cryptocurrency briefly climbed above $3,950 before encountering strong selling pressure, resulting in a breakdown below key technical levels.

The failed breakout occurred despite ETH clearing the 50% Fibonacci retracement level of its recent decline from $4,292 to $3,677. Market participants remain cautious as the price struggles to maintain momentum above the 100-hour moving average, with immediate support now forming around $3,840.

Technical indicators suggest weakening bullish momentum following the breach of a rising trendline that had provided support NEAR $3,960. Traders are watching for potential downside acceleration if Ethereum fails to reclaim the $3,980 level in coming sessions.

Ethereum MVRV Ratio Signals Potential Downtrend as Death Cross Reappears

Ethereum's Market Value to Realized Value (MVRV) ratio has triggered a bearish signal with the formation of a death cross, historically preceding significant price declines. The last occurrence saw ETH plummet 60% from $3,300 to $1,400, according to on-chain analyst Ali Martinez.

The MVRV ratio compares Ethereum's market capitalization against its realized cap—a metric that values each token at its last transacted price. This divergence between current market value and investor cost basis suggests weakening fundamentals. When the ratio falls below 1, it indicates the average holder is underwater on their position.

Market participants are watching closely as this technical pattern emerges during a period of heightened volatility across crypto markets. The signal's predictive accuracy in previous cycles lends weight to concerns about Ethereum's near-term price trajectory.

Ethereum Price Eyes $4,500 as Market Fear Index Signals Accumulation Opportunity

Ethereum's price action teeters at a critical juncture, with traders closely monitoring the $4,100 resistance level after rebounding from $3,800 support. A breakout could propel ETH toward analysts' $4,500 target, while failure may extend the current correction. The crypto Fear Index's drop to 30 reveals mounting trader caution—a historical precursor to accumulation phases where savvy investors enter positions.

On-chain data paints a bullish counter-narrative: institutional players are quietly increasing ETH exposure through staking contracts, demonstrating conviction in Ethereum's fundamentals. Layer 2 project MAGACOIN FINANCE emerges as a potential beneficiary of this sentiment, attracting early investors anticipating the next scalability-driven rally.

Ethereum Developer Warns of Paradigm's Growing Influence on ETH Ecosystem

A core Ethereum developer has sounded the alarm about venture capital firm Paradigm's expanding footprint in the Ethereum ecosystem. The developer, known pseudonymously as 'Fede's intern,' warns Paradigm's activities may pose systemic risks to Ethereum's open-source principles.

Paradigm has strategically positioned itself across multiple layers of Ethereum's infrastructure. The firm has recruited top researchers, funded critical open-source libraries, and launched Tempo - a competing layer-1 blockchain that recently attracted $500 million in funding at a $5 billion valuation. The departure of Ethereum Foundation researcher Dankrad Feist to Tempo has particularly raised eyebrows.

With $12.7 billion in assets under management and an 11.80% performance metric according to Kaito AI, Paradigm has become crypto's top-performing VC firm. Its Ethereum investments include leading a $40 million round for Etherealize and backing Reth, a Rust-based execution client.

'I've been saying for two years that Paradigm's influence could become a tail risk for Ethereum,' the developer stated. 'This will become increasingly clear in coming months.' The comments highlight growing tensions between Ethereum's decentralized ethos and the concentration of institutional capital in its ecosystem.

Will ETH Price Hit 4000?

Based on current technical indicators and market sentiment, ETH faces significant resistance near the $4,000 level. The price currently trades below the 20-day moving average of $4,110.99, while Bollinger Band analysis shows the upper resistance at $4,685.92. Technical analyst John from BTCC suggests that while institutional demand provides underlying support, the combination of recent security incidents and technical resistance makes an immediate breakthrough above $4,000 challenging in the short term.