With Ethereum (ETH)’s decline of 3.7% over the past week, market analyst Ali Martinez today pointed out the next potential target for the asset based on his technical analysis pattern. According to the analyst, a retest to $4,250 could be the next support for the cryptocurrency once more time.
Bearish pressure on Ethereum has been continuing over the past seven days, following a significant reversal that started from a high of $4,816.89 noted on August 26th, 2025. Since that day, the token has been witnessing a downtrend that saw its value currently standing at $4,352.36.
Ethereum Faces Bearishness: What Does This Mean
The broader virtual currency market continues to experience reduced strength as fund inflows have decreased over the past two weeks. The drop has been noticed in several assets across the market, majorly BTC and ETH, both of which are witnessing corrective momentum after recent rallies.
Ethereum has dropped substantially from its new ATH of $4,946.05 (reached last week on Monday, August 25th) and currently stands at $4,352.36.
According to Ali’s technical analysis, the formation of the parallel channel pattern (as illustrated in the chart above) indicates that ETH is currently in a consolidation phase. This correction indicates a bearish pressure that could trigger a greater price fall, with the analyst pointing out a potential retest of the support level at $4,250.
ETH price action shows that the $4,250 region remains the most crucial short-term support, as revealed by the analyst. This region has already been tested on several occasions. According to Ali, another retest could offer an opportunity for bullish momentum to appear on the trading chart. If such positive indicators emerge, Ethereum could bounce back with an initial upward target at $4,540.70, followed by a potential retest of $4,615.35.
ETH Supply on Exchanges Hits 3-Year Low
Despite experiencing a significant correction phase, Ethereum has demonstrated resilience in its weekly trading sessions. After falling to crucial support levels, the asset has managed to maintain its bullish momentum. One of the key catalysts holding the token’s price stability is the drop in Ether tokens on exchanges. According to data highlighted today by CryptoQuant, Ethereum reserves on centralized exchanges have fallen to their lowest mark, a level noted three years ago. Metrics from CryptoQuant analysts indicate that Ether holdings have dropped by almost 10.7 million ETH since September 2022, currently hovering at around 17.4 million. The fall has been triggered by surging demand from ETH corporate treasuries and spot ETFs.
Spot Ethereum ETFs have been a key driver in the market. These investment vehicles have so far pulled in more than $13 billion in net inflow, with more than $10 billion drawn from June to August, as per Coinglass data. Spot Ether ETFs currently hold a total of $24 billion AUM, highlighting robust institutional interest.
Publicly-traded companies also continue accumulating Ethereum into their balance sheets. Today, BitMine Immersion Technologies made a new purchase of $358 million worth of 80,000 Ether, an acquisition that increased its cumulative holdings to 1,947,200 ETH valued at $8.69 billion. A total of 17 public companies, including BitMine, SharpLink Gaming, The Ether Machine, and many others, currently manage more than 3.6 million ETH in their financial balance sheets.
Ethereum’s attractiveness as a yield-generating asset is causing a decrease in circulating supply, with analysts expecting demand to rise.
