Ethereum’s value dipped below $4,000 on Thursday, marking the start of a technical bear market and reigniting concerns among analysts, including noted critic Peter Schiff. The cryptocurrency, which reached a peak of approximately $4,850 in August, is now over 20% off that high, experiencing its sharpest correction since the early summer months.
The downturn was exacerbated when Ethereum (ETH) fell through the critical support level of $4,150, leading to a significant sell-off that pushed its price down to around $3,930. This decline effectively nullified weeks of gains and raised alarms regarding ongoing corporate treasury purchases, previously touted as stabilizing elements for the market.
Market analysts are now closely monitoring whether Ethereum can stabilize above the $3,800 support band or if a deeper decline is imminent. Schiff, who has maintained a skeptical stance on cryptocurrency rallies, attributed the sharp reversal in Ethereum’s fortunes to its correlation with Bitcoin. He suggested that this downturn serves as an indicator of a broader bearish trend within the cryptocurrency market, predicting that Bitcoin may soon follow suit.
The current trading levels of Ethereum resemble those from early August, indicating a significant loss of momentum. Analysts express concerns that both Ethereum and Bitcoin, the two largest digital assets by market capitalization, may struggle to maintain their values leading up to the end of 2025.
As the cryptocurrency market grapples with these developments, the focus now shifts to Bitcoin and how it may respond to Ethereum’s recent decline, further complicating the investment landscape for traders and investors alike.
