Ethereum (CRYPTO: ETH) is making another run at $4,000, and investors are split on whether it can hold this time. After a rollercoaster year (rallying above $4,700 in August, then sliding hard in October), ETH is currently hovering in the high $3,000s.

The drop below $4,000 has market watchers picking sides. Some see warning signs of a deeper correction. Others point to improving fundamentals that could fuel a comeback. The gaping question remains: Can ETH break back above $4,000 and actually hold it?

Market Recovery and Recent Price Action

2025 has been messy for Ethereum. In early October, ETH rode BTC’s wave past $4,300 as Bitcoin hit a new all-time high. That rally lasted about five minutes. Geopolitical tensions triggered a market-wide sell-off, and Ethereum dropped to the mid-$3,000s within days.

But the bounce was just as fast. Institutional buyers stepped in hard, pushing ETH back above $4,000 by mid-October. Then came the inevitable profit-taking. By late October, ETH had slipped back below $4,000 and was trading near $3,800 on Halloween.

Now investor confidence in Ethereum seems to be creeping back. Fresh ETF money is flowing in, network upgrades are landing, and the $4,000 level is back in focus as the psychological line Ethereum needs to cross.

The Bullish Case for Ethereum

Ethereum bulls think this dip is just a rest stop before the next leg up. Here’s what’s backing that confidence:

1. Institutional Money Still Flowing: Wall Street hasn’t given up on ETH. The launch of Ethereum ETFs this year opened the gates to mainstream capital in a big way. Over the summer, Ethereum ETFs pulled in record inflows. More than $2.8 billion poured in during a single week in August, crushing Bitcoin fund flows at the time.
2. Network Upgrades Hitting: Ethereum keeps getting better under the hood. The “Fusaka” upgrade drops December 3 and should boost data throughput significantly. More capacity, lower gas fees. That’s the goal. Right now, ETH’s network activity is nearing a 2025 high, but fees haven’t exploded like they did in past bull runs. If Ethereum can scale without pricing out users, that’s a huge win.
3. Price Targets Still Ambitious: Plenty of analysts expect ETH to push past its previous all-time high of $4,865. CoinGape recently forecasted a $5,000 target, especially if Fusaka delivers. Five-figure predictions are still floating around from credible sources. The bull case is now a matter of “when, not if” ETH eventually powers back above $4K, and keeps climbing.

The Bearish Case for Ethereum

Despite the fresh bullish Ethereum price predictions, the bears aren’t buying the optimism. Here’s their counter-argument:

1. Weakening Institutional Enthusiasm: ETFs brought a wave of institutional money earlier this year, but that tide seems to be turning. Fund flows went negative in recent weeks. In late October, Ethereum spot ETFs saw heavy outflows. BlackRock and other major players trimmed their ETH positions as the market declined. When the smart money starts heading for the exits, that’s worth paying attention to.
2. Macro Headwinds and Competition: High interest rates and recession fears are still hanging over risk assets like crypto. If the Federal Reserve stays hawkish, speculative investments like ETH could keep struggling. And when that happens, Ethereum could tank to $3,000 all over again.
3. Network Fees and Scaling Solutions Headaches: There’s also the Layer 2 problem. Ethereum’s push to scale through networks like Base and Arbitrum is great for users (lower fees, faster transactions). But it’s also siphoning activity away from the main chain, which means less fee revenue getting burned. Standard Chartered just slashed its year-end ETH target to $4,000 (down from $10,000), partly because of this Layer 2 migration.

What Happens Next

The $4,000 level is where the bulls and bears fight plays out. Bulls have institutional backing, network improvements, and ambitious price forecasts on their side. Bears see weakening fund flows, macro uncertainty, and structural challenges eating into Ethereum’s value. Whichever narrative wins determines whether ETH reclaims $4,000 or keeps sliding. Right now, it’s anyone’s game, and it’ll be a crucial tussle heading into the new year.