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