Ethereum’s price has taken a hit, falling below the $3,700 mark as the crypto market experiences a broader adjustment. What does this mean for investors, and is a rebound on the horizon? Let’s dive into the latest Ethereum news and uncover the key drivers behind this decline.
Ethereum Price Drops 3.7%: What’s Behind the Decline?
Ethereum (ETH) has seen a 3.7% drop, slipping below $3,700 as of August 1, 2025. This decline reflects a broader market correction, influenced by liquidity shifts and institutional activity. Key factors include:
- Exchange Reserves Drop: On-chain data shows a reduction of 1 million ETH in exchange-held reserves, signaling a shift toward self-custody.
- Liquidation Pressure: ETH’s failure to hold the $3,800 support level triggered increased liquidations on major exchanges.
- Technical Indicators: The price fell below the 50% Fibonacci retracement level and the 100-hourly SMA, amplifying bearish sentiment.
Institutional Inflows: A Silver Lining for Ethereum?
Despite the price drop, institutional confidence in Ethereum remains strong. Spot Ether ETFs have recorded a record 19-day inflow streak, highlighting sustained demand from big players. Analysts view this as a stabilizing force amid short-term volatility.
Will Ethereum Rebound? Analysts Weigh In
Experts are divided on Ethereum’s near-term trajectory:
- Bullish Outlook: ITC Crypto founder Benjamin Cowen predicts ETH could break $4,000 soon, with all-time highs of $5,700–$7,500 possible.
- Moderate Projections: Analyst “Crypto GEMs” forecasts a $5,000 target by late August.
- On-Chain Strength: Declining exchange reserves suggest reduced sell pressure, potentially paving the way for a rebound.
Ethereum vs. Bitcoin: Who’s Leading in 2025?
Ethereum has outperformed Bitcoin in Q3 2025, delivering returns nearly five times higher. However, this is largely attributed to the broader market rally rather than a fundamental ETH breakout.
Key Takeaways for Crypto Investors
The current Ethereum price action highlights a tug-of-war between bearish technicals and bullish institutional support. While short-term volatility persists, long-term confidence in ETH remains intact. Keep an eye on:
- Institutional ETF inflows
- On-chain exchange reserve trends
- Key support levels at $3,700–$3,750
FAQs
Q: Why did Ethereum’s price drop below $3,700?
A: The decline reflects a broader market adjustment, with liquidity shifts and technical breakdowns contributing to the sell-off.
Q: Are institutions still buying Ethereum?
A: Yes, spot Ether ETFs have seen a record 19-day inflow streak, indicating strong institutional demand.
Q: What’s the long-term outlook for Ethereum?
A: Analysts remain optimistic, with price targets ranging from $5,000 to $7,500 based on historical patterns and on-chain metrics.
Q: How does Ethereum’s performance compare to Bitcoin?
A: ETH has outperformed BTC in Q3 2025, but this is largely due to the broader market rally.
