Ethereum has experienced a sharp decline in price over the past week, dropping below $4,200 and sparking debate about its short-term future. Despite this downturn, major institutional players continue to accumulate ETH tokens, suggesting strong confidence in the cryptocurrency’s long-term potential.
Data from Farside Investors reveals that BlackRock’s ETH-linked fund brought in $512 million in net capital inflows last week alone. This substantial investment comes at a time when Ethereum has seen a 7.6% decline over a seven-day period.
The timing of this institutional buying appears strategic. Last week, the Federal Reserve cut interest rates by 25 basis points, in line with analyst expectations. Market participants are anticipating another cut of the same magnitude next month.
Lower interest rates typically drive investors toward riskier assets like cryptocurrencies. This monetary policy shift may explain why the combined market value of altcoins has recently increased to more than $1.7 trillion, according to CoinMarketCap.
ETH is currently approaching the $4,000 support level, which was previously a resistance point. Many market observers believe this level could serve as a launchpad for a major rebound if prices hold.
Trading volumes have surged dramatically in the past 24 hours as ETH dropped 15%. This price action triggered over $1.5 billion in liquidations – the largest wave of long liquidations seen in six months.
The recent price action has broken Ethereum’s 20-day moving average. Momentum indicators and MACD have turned downward, highlighting a short-term trend reversal.
Support levels at $4,160 and $4,150 appear to be holding for now, but a breakdown could potentially drive ETH toward $3,800. The cryptocurrency is now hovering near its lowest price in two months.
Some analysts suggest that this aggressive market flush may have cleared out weak hands, potentially setting the stage for late buyers to re-enter at what they perceive as a key discount.
The fear and greed index has retreated into “fear” territory, confirming a shift in sentiment among investors. Whale activity indicates profit-taking has been occurring at higher levels.
From a fundamental perspective, Ethereum continues to show strong long-term potential despite current market turbulence. The upcoming Fusaka upgrade and increasing institutional inflows could reinvigorate the Ethereum market in the coming months.
Analysts maintain optimism about a return above $5,000 by the end of the year, provided that market conditions stabilize. Some even project a path toward $10,000, which would represent a 140% upside from current levels.
Interesting dip for $ETH.
A bounce seems obvious here, IMO. pic.twitter.com/bLAHVhJyCd
— Lucky (@LLuciano_BTC) September 22, 2025
If the price holds at $4,000 and rebounds sharply, these bullish price targets become increasingly plausible. The current price action suggests that savvy investors are closely monitoring developments in the Ethereum ecosystem.
The altcoin season has officially begun according to market metrics, which could provide additional tailwinds for ETH’s price recovery. Market participants appear to be buying the dip, viewing the current prices as an attractive entry point.
ETH is now testing critical support levels that will determine its next major move. The coming weeks will be crucial for establishing whether the current pullback represents a temporary correction or the beginning of a more sustained downtrend.
The post Ethereum (ETH) Price: BlackRock Invests $512 Million During 7.6% Weekly Decline appeared first on Blockonomi.
Also read: Solana (SOL) Price: $836M Whale Transfers Signal Possible $200 Support Test
