Analysts are looking at $3,560 or upward targets up to $20,000 after Ethereum crashed 15% on Monday. However, institutional influx and Fed cuts promote a long-term bullish outlook. $4,000 is a key level as the Bulls and Bears fight for control.
Ethereum Price plunged into a violent sale on Monday, wiping out many long, leveraged positions and rattling traders.
However, Ethereum’s prices have rebounded slightly, with Coingecko showing ETH trading at around $4,197, with the 24-hour range close to $4,125-$4,220.
Clashes and Massacres: $1.5 billion liquidation
On Monday, Ethereum (ETH) fell by about 15% alongside other major cryptocurrencies, including Bitcoin (BTC), triggering the liquidation of $1.5 billion, the largest single event in six months.
The biggest liquidation cascade of history
Over a billion dollars of longs were wiped out in an hour
Real Bloodbath
– al “wacy” (@wacy_time1) September 22, 2025
The sudden drop forced many leveraged long positions to close, pushing ETH onto a vital psychological bed of around $4,000.
Prices also fell when demand for the system continued.
BlackRock’s Spot ETH ETF registers about $512 million inflows during the same sale, highlighting the gap between retail pressure and institutional accumulation.
Technical Crosshairs: $4,000 is a line in the sand
Technically, the market looks fragile. ETH recently broke the symmetrical triangle. This is a move that gives a measured downside target close to $3,560 if sales continue.
Analyst Michael Van de Poppe has flagged the area between $3,550 and $3,750 as a potential support zone, noting that the 20-week EMA is close to $3,685.
I think you’ll see a bit more chop happening with $eth.
I’m not sure if I’ll soak up the $3,550-3,750 depth, but I’m sure I’ll start watching.
– The 20-week MA is approaching.
– Compression is built -> big movement that occurs later.Currently… pic.twitter.com/muvueyy4xv has decreased by nearly 20%
– September 23, 2025
The short-term resistance bands gather between about $4,220 and $4,360.
Below that, traders are looking at the $4,120, $4,050 and the important $4,000 levels.
A critical break under these support could accelerate the decline to around $3,800.
Conversely, clean bounces and decisive closures above the 50-day EMA near $4,250 improve the chances of a sustained recovery.
The second technical concern is the downward triangle, which formed nearly $4,956 after its peak in August.
That construction maintains $4,070 as a make-up or break pivot.
If $4,070 is held, the path to retesting $5,000 will resume. If it fails, it will allow for up to $3,800 downsides.
Bull Case: ETF, M2 Chart, 5-digit target
On the bullish side, a series of analysts and macro studies argue that today’s weaknesses can set the stage for offensive benefits.
Ted Pillows proposed a scenario where the Global M2 Money Supply Chart was applied to Ethereum and landed ETH between $18,000 and $20,000 by 2026.
Global M2 Supply currently projects between $18,000 and $20,000 ETH per cycle top.
Even if $ETH pulls half of that, it trades at over $10,000.
I’m still bullish on Ethereum for the long term and think that a $4,000 liquidity zone sweep could happen before the reversal. pic.twitter.com/w6zzl0oupi
– Ted (@tedpillows) September 21, 2025
Other markets revive the more modest, yet still impressive gatherings.
Daan de Rover and Fundstrat’s Mark Newton highlighted the $5,500 target, adding that Newton is unlikely to see ETH well below $4,000.
Institutional commitments reinforced that sentiment. It has combined flows from large managers like BlackRock and Fidelity to reach hundreds of millions, many analysts say they support higher prices over time, many dynamic analysts say.
Additionally, Crypto Gems points to Wyckoff’s accumulation scenario and chart setup, which can take ETH to $7,000 if the springs and test sequences are kept.
Michael Van de Poppe himself argues that compression has been built and that immersing in the current level represents an attractive accumulation opportunity for long-term buyers.
Things traders should see
The key data points to monitor are liquidity below $4,000, ETF inflows, and whether EMAs around $4,250 will be recovered.
Ethereum sits at a crossroads. The short term is binary. Holding over $4,000, the Bulls can chase higher targets. Losing that floor, the technical setup refers to a deeper fix in the mid-$3,000.
Long-term and robust institutional flows, tokenization trends, and macro mitigation provide a clear bullish argument. Some analysts even see five-digit double-digit results on the horizon.
Traders and investors should monitor liquidity, ETF flows, and moving average checks to determine which passes will unfold next.
