Ethereum’s price falls below $4,000: Is the bull market still strong?

Ethereum’s (ETH) price has dipped below $4,000, sparking discussions about the stability of the bull market support band. Despite the recent pullback, analysts believe that Ethereum’s technical structure indicates a potential recovery if crucial support levels hold.

Last week, Ethereum experienced a sell-off that pushed its price down to an intraday low of around $3,436 on October 11. This decline briefly breached the 20-week simple moving average (SMA) at $3,636 and the 21-week exponential moving average (EMA) at $3,733, which collectively form the widely tracked bull market support band.

However, by October 14, ETH had bounced back by over 20%, surging to roughly $4,200–$4,300 range. This recovery was accompanied by an increase in institutional inflows and whale accumulation, indicating strong buying interest despite short-term market volatility.

Technical analyst @crypto_goos highlighted the similarity between Ethereum’s current setup and a previous bull market retest in early 2025. If history repeats itself, ETH could be gearing up for another upward trajectory, similar to the rally that drove prices towards $4,800 earlier this year.

The presence of a bull flag pattern on the daily chart further reinforces the potential for a rally. Trader Donald Dean (@donaldjdean) pointed out that Ethereum successfully reclaimed the $3,825 support zone from July, signaling positive developments. The resistance levels at $4,500, $4,955, and $5,766 are crucial, with a breakthrough above $4,800 potentially paving the way for a bullish momentum towards the $6,000–$7,000 range.

Ethereum’s long-term outlook appears promising, supported by recent regulatory approvals in the U.S. REX-Osprey launched the first ETH staking ETF on September 25, followed by Grayscale’s Ethereum ETF staking activation on October 6. Market strategist Ted (@TedPillows) believes that Ethereum’s fair value could reach $8,000–$10,000 by Q1 2026, citing growing institutional demand and staking approvals as key catalysts for a potential rally.

In conclusion, Ethereum’s short-term outlook remains cautiously bullish despite the recent dip below $4,000. As long as the cryptocurrency stays above the bull market support band, the overall trend remains positive. Institutional adoption through staking ETFs and ongoing whale accumulation could help Ethereum regain momentum in the coming months, with analysts projecting medium-term targets between $6,000 and $7,000, and potentially extending towards $8,000–$10,000 by early 2026.