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- Ethereum is trading near key support between $1500–$1670, with resistance at $4000.
- Analysts suggest Ethereum could drop further before rebounding in Q4 2025.
- On-chain data shows declining activity, a low burn rate, and rising inflation pressure.
Ethereum is currently trading around $1800, hovering near a significant support area. Analysts identify the $1500–$1670 range as a key zone where buyers may step in. This range has historically provided a floor during periods of market weakness. A drop into this area could offer a favorable entry point for long-term investors.
But there is also the chance of a steeper drop. If Ethereum falls below $1500, the next level could be close to $1300. This would be a significant correction from current levels. This is termed by analysts as a “make or break” moment in the case of Ethereum, with market structure in the balance.
Upside potential is also in the picture. A breakout over $2100 would indicate renewed strength. Should Ethereum be able to maintain support and push upwards, prices would likely target the $3500–$4000 area in late 2025. The $4000 mark is particularly relevant. It is both resistance and a level of profit-taking. A breakthrough would indicate the beginning of an impressive bull run.
Ethereum Burn Rate Hits Post-Merge Low
Data on-chain offers a less positive perspective. Ethereum network activity has diminished significantly over the past few months. Active addresses have decreased since the beginning of this year. Fewer users translate to less traffic, hence lower mean transaction charges.
This lower activity has an impact on Ethereum’s burn mechanism. Post the Merge, Ethereum destroys some of its transaction charges to reduce supply. With decreased activity and lower fees, the burn has dipped to an all-time low since the redesign. This has placed inflationary stress on the asset.
The efficiency gain from the Dencun update has yet to find its way into increased demand. As a result, the price of Ethereum continues to be pulled down by weak usage. Until network activity picks up, any price recovery can be temporary.
Ethereum Whales Sell 500K ETH in 48 Hours
Adding to the concern is increasing whale activity. Whales offloaded approximately 500,000 ETH in the past 48 hours. Such moves tend to be precursors to big market changes. When whale exposure is pared down, it is a cue to be concerned even for long-term holders.
Still, there is hope. The broader trend depends on how Ethereum performs at current levels. For the time being, Ethereum is in a tipping point position. Lower levels are in the picture if support fails to hold. A clean breakthrough in resistance would alter everything. The next few months are key to the second-largest crypto asset.
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