Ethereum – A 10% Adjustment May Pave the Way for a New Peak

In the past 7 days, the price of Ethereum has fallen more than 10%, testing the important support zone around 4,100 USD. However, analysts do not see this as a sign of weakness, but rather as a healthy technical adjustment after the previous rise to the sky. The 4,100 USD zone, which was a strong resistance in the past, has now become support, and the price returning to test it is a classic pattern before breaking out. Notably, ETH has also filled the CME gap in the range of 4,096 – 4,192 USD. Crypto analyst Crypto Rover believes: "This is exactly what we want to see before ETH enters the next upward phase." In fact, the ETH/USD pair on the 4-hour chart is forming a bullish flag, a continuation pattern of the upward trend. However, the bullish scenario will be invalidated if ETH closes a candle below the support zone of 3,800 USD.

Technical Perspective: Medium-Term Target Around 7,000 USD On the daily frame, ETH has broken out of a multi-month megaphone pattern. According to Elliott wave theory combined with Fibonacci extension of 1.618, ETH's mid-term target is set at around 7,000 USD. This further reinforces the expectation that the current correction is merely a stepping stone.

Strong Basic Platform Not only technical, Ethereum is also supported by a series of fundamental factors: Tokenization of real assets (RWA) is increasingly developing, bringing value from the real world to the blockchain. The treasury management plan using ETH is being implemented, creating new momentum for holding Ether. Ethereum still leads the DeFi market, with 87 billion USD TVL (total value locked) and stablecoin market capitalization exceeding 142 billion USD. In addition, institutional capital is pouring in strongly. The spot ETH ETFs in the US have recorded continuous net inflows for several weeks from May to August. A recent report also confirms: Ethereum's ETP products attracted 2.9 billion USD in just one week, surpassing Bitcoin – a clear sign that institutions are accelerating their accumulation of ETH. Fed, Interest Rates And "Altseason" 2025 A macro factor that could act as a catalyst for the altcoin market is the possibility of the Federal Reserve (Fed) cutting interest rates. In the context of high inflation and rising unemployment rates, along with political pressure, the scenario of the Fed lowering interest rates in September is being highly regarded by the market. President Donald Trump recently publicly called for the Fed to lower interest rates, criticizing Chairman Jerome Powell that the current policy is "harming the housing sector" and making it difficult for people to obtain mortgages. If the Fed actually acts, the flow of money leaving traditional financial markets in search of higher profits in crypto is a completely feasible scenario. This could trigger Altseason 2025, similar to the "crypto summer" of 2017, but on a much larger scale. Conclusion Ethereum is at a critical point: Technically, the pullback to the 4,100 USD zone reinforces the bullish pattern, with a medium-term target of 7,000 USD. Fundamentally, ETH leads the DeFi market, stablecoins, and attracts strong institutional capital. On a macro level, the possibility of the Fed cutting interest rates could become a catalyst for an altcoin market explosion. Therefore, many analysts believe that ETH is not only preparing for a rebound but also has the potential to establish a new historical high in 2025.