Ethereum (ETH) has dropped 6% in 24 hours, falling to around $3,630, according to CoinMarketCap. The decline follows a powerful 50% rally in July, Ethereum’s strongest monthly performance in three years. Traders had expected continued momentum, fueled by spot ETH ETF inflows and growing corporate reserves, but the $4,000 resistance proved too strong.
ETF holdings grew to $21.85 billion, and institutional reserves passed $10 billion, yet market sentiment flipped bearish near a key supply zone above $3,800. Crypto analyst Crypto Fella points out that ETH broke several resistance levels from $2,600 to $3,500, but the $4K mark remains a crucial barrier.
If ETH fails to break above $4,000, it could slide back to the $3,300–$3,500 range. However, holding above $2,900 keeps the bullish structure intact.
Analyst Merlijn The Trader sees similarities with Ethereum’s 2021 bull cycle, predicting a potential breakout toward $8,000–$11,000 if the pattern repeats. The market is at a tipping point—a breakout could trigger a mega rally, while rejection may spark a short-term correction.
With ETFs expanding and institutional demand rising, Ethereum’s next move could define the rest of 2025.
You might also like: Dogecoin on the Move: 5 Signals as Whales Drop $200M Buying Spree
