Ethereum at a Tipping Point: How Likely Is a Sub-$4,000 Slide?

Core Insights - Ethereum (ETH) has fallen below the critical support level of $4,426, indicating a cooling sentiment in the broader crypto market [1] - The decline in ETH's price has led to a decrease in its social dominance, which currently stands at 6.48%, down by 5% over the past five days [2] - The Smart Money Index (SMI) for ETH has decreased by 6% since Monday, suggesting that institutional investors are taking profits and reducing their exposure [4][5] Market Sentiment - The drop in ETH's social dominance signals a fading interest among traders, with speculative attention shifting to other assets [4] - A declining SMI indicates that smart money is exiting the market, which could exacerbate bearish pressure on ETH [6] Price Analysis - If demand does not return, ETH could slide towards $3,800, with a risk of falling below $4,000 to a potential low of $3,875 [7] - Conversely, if demand returns, ETH could rebound above $4,426, potentially reaching $4,742 [8]