Why is Ethereum price failing to break $4.5K?

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Key takeaways:

  • Declining spot buying and spot Ethereum ETF outflows signal weakening demand.

  • ETH price technicals show a possibility of a drop to $3,5000.

So here’s the thing. Ether’s (ETH) price has been on a downward spiral, forming lower highs and lower lows ever since it peaked at $4,950 on August 14. That’s right, $4,950-now, let’s all take a moment to reflect on how the mighty have fallen.

Fast forward to today, and the price has hit a stubborn wall at $4,500. It’s been stuck here for over 10 days, like that one friend who can’t decide what to order at the restaurant and just ends up holding everyone up. Let’s dive deeper into what’s really keeping Bitcoin from taking off at $4,500.

ETH buyers are stepping back

Oh, the drama! Ether seems to be struggling to push past the $4,500 resistance, andancy jargon for the difference between buying and selling trade volumes-has been negative, showing that no one’s rushing in to scoop up ETH, even as it consolidates.

Without the necessary demand, Ether’s price recovery is looking about as likely as a snowball fight in the Sahara. Any attempt to break above that $4,500 barrier will likely fall flat, and unless new buyers show up, we could be looking at a prolonged slump. Hang tight!

And guess what? The spot Ethereum ETFs, those trusty investment vehicles that are supposed to help pump up the price, have been losing steam too. Last week alone, these ETFs bled out a staggering $787.6 million. Ouch. With Ether ETFs shedding $446.8 million on Friday alone, the price is stuck in a holding pattern. New buyers, where are you?

Decreasing Ether open interest

Let’s talk about leverage for a second. Ether futures open interest (OI), which shows how many futures contracts are out there, has dropped by 18%. This isn’t exactly a stamp of approval for bullish sentiment. When OI drops, it suggests that traders aren’t that interested in putting their money on the line, and that usually means no one’s feeling too confident about the price going up. We saw the same thing happen when OI fell in early August, and guess what? The price followed suit. Classic.

Ethereum network activity slumps with price

Now, Ethereum’s network activity is taking a hit, and we can blame the Dencun upgrade from March 2024 for that. Oh, and of course, Ethereum’s revenue has dropped by 44% in August, despite the price soaring. It’s like throwing a party with no guests-just doesn’t feel right, does it?

Ethereum’s transaction fees and revenue have also seen a dip, with revenue falling from $25.6 million in July to just $14.1 million in August. Talk about a party pooper.

Much of this is down to the Dencun upgrade that lowered transaction fees for layer-2 scaling networks. Fewer fees = fewer earnings for Ether holders. So, unless something changes, we’re looking at some serious price momentum struggles.

ETH price technicals put $3,550 in play

Now, the fun part: the charts. ETH’s price has been forming a descending triangle pattern (don’t worry, it’s not as scary as it sounds) since mid-August. This pattern often signals a bearish reversal, which, in layman’s terms, means that it could keep dropping. If the price falls below the $4,200 support level, brace yourselves for a potential fall to $3,550. Yikes, that’s an 18% drop!

But hold your horses! Not all hope is lost. Some analysts think a bounce might occur before things get too grim. Investor Ted Pillows, who sounds suspiciously like he knows what he’s talking about, says ETH is still “looking strong” above $4,200. But he also warned we might see a retest of the $3,800-$3,900 zone before any potential recovery. Stay tuned!

$ETH is holding above its $4.2K support level.

Ethereum price action isn’t looking strong, as every small bounce is getting fully retraced.

Looking for a possible retest of $3.8K-$3.9K zone this month before reversal.

– Ted (@TedPillows) September 8, 2025

So there you have it. Keep your eyes peeled, because $3,745 might be the next big support level if $4,250 doesn’t hold up.

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2025-09-08 19:05