I took a little while to think about it, and yes, there is an algebraic solution to the problem.
For the function
[tex]y=\frac{1}{x^2-4}[/tex]
let the range be denoted R, which is also the y-value, so we have
[tex]R=\frac{1}{x^2-4}[/tex]
Now, we want to solve for x:
[tex]Rx^2-4R=1[/tex]
[tex]x^2=\frac{1+4R}{R}[/tex]
[tex]x=\pm\sqrt{\frac{1+4R}{R}}[/tex]
Now, x exists (and thus a correspondent range exist) whenever
[tex]\frac{1+4R}{R}\geq 0[/tex]
and clearly the opposite of that is, if
[tex]\frac{1+4R}{R}< 0[/tex]
then the domain does not exist, thus the range does not exist.
Now, if we solve this inequality, for R>0 (we can see that [itex]R\neq 0[/itex])
[tex]1+4R<0[/tex]
[tex]R<\frac{-1}{4}[/tex]
And we obviously can't have that both R>0 and [itex]R<\frac{-1}{4}[/itex] so we scrap that. Now if R<0
[tex]1+4R>0[/tex]
[tex]R>\frac{-1}{4}[/tex]
Which gives us the intersection [tex]\frac{-1}{4}<R<0[/tex] as required.