Ethereum dipped below $4K, is $3,500 the next stop?

Ethereum just staged an unplanned nosedive, slamming below $4,000 for the first time since August.

Ether hit $3,994 during Thursday’s morning trading in Asia before trying to cling just above that magic number.

That 3.3% drop today pushed ETH down about 19% from its all-time frenzy peak, with most of that tumble happening in just the last week.

The crypto seas are getting stormier as total market cap slips beneath $4 trillion, but Ethereum is facing a harsher tide after its meteoric 225% rally between April and August.

Support zone

The plot thickens as analysts sharpen their crystal balls. ‘Sykodelic’ suggests we might just find a $3,900 floor soon, thanks to oversold signals flashing red like a disco gone wrong.

The bottom is in for Bitcoin.

And it's almost in for $ETH . $ETH is approaching a very similar setup from back June this year with lower low into supply, joined with the RSI getting close to oversold.

$3,900+ will be the bottom imo and it will be in the next day or so.

Chill… pic.twitter.com/Yt4Y8wRsSw

— Sykodelic 🔪 (@Sykodelic_) September 25, 2025

Macro trader Jason Pizzino throws some cold water on the party, noting Ethereum’s swings usually lead to brutal corrections of 20%, or sometimes even 30%-40%.

Ted Pillows throws another sobering prediction into the mix, eyeing a $3,800 support zone as a decent collection point for savvy buyers tuning out the panic.

In fact, a bunch of experts have their sights set even lower, around $3,500, a level that would slice about 30% off the peak.

That’s the kind of correction that, while painful, is pretty par for the course in crypto’s volatile playground.

Short-term sellers

But while the retail crowd is freaking out, big players are calmly scooping up Ethereum like it’s going out of style.

‘Ash Crypto’ reveals ten whales collectively grabbed over 210,000 ETH, worth a cool $86 million, in off-exchange deals.

🐳 10 WHALES HAVE BOUGHT 210,000+ $ETH WORTH $863 MILLION VIA OTC.

WHILE YOU ARE PANIC SELLING, WHALES ARE BUYING YOUR CHEAP ETHEREUM. pic.twitter.com/m9n0Ehs9A8

— Ash Crypto (@Ashcryptoreal) September 25, 2025

So while the masses panic-sell, these crypto whales are throwing their weight around, snatching up all that discounted Ethereum.

Supporting this whale watch, the amount of Ethereum sitting on centralized exchanges has hit a low not seen since 2016, according to Glassnode and CryptoQuant.

Nick Ruck from LVRG Research interprets this as a bullish sign, it’s like a secret handshake hinting that big players are quietly accumulating while short-term sellers vanish.

Maybe macroeconomic clouds will part, ushering in a rebound for ETH.

Red and green

And the thing is, Ethereum’s freefall isn’t an isolated tragedy. Experts highlighted that alts are feeling the heat too.

Avalanche plunged 7.7% after its recent double in price. Other tokens like Pump.fun, Mantle, Cronos, and Sky took similar hits.

The only survivors among the top hundred altcoins? Flare and Immutable, stubbornly clinging to the green zone.