Ethereum Drops 6% to $3,630 After Briefly Reaching $3,800
Ethereum (ETH) declined over 6% in the last 24 hours, settling around $3,630 after reaching $3,800.
This pullback follows a July rally where ETH surged more than 50%, its highest monthly gain in three years. Despite this dip, on-chain analysis from Glassnode indicates potential for a new all-time high (ATH) of $4,900, driven by:
- Positive investor sentiment
- Increased ETF inflows
- Rising open interest (OI) in futures markets
Glassnode's $4,900 Target
Glassnode reports that Ethereum is trading near its March 2024 levels, with unrealized profits remaining low. This suggests significant upside potential as investors hold onto their positions. If unrealized profits align with 2024 levels, ETH could approach $4,900 and test resistance at $5,000.
Shifts in investor perception indicate Ethereum may be transitioning from a speculative asset to a core financial asset.
Supporting Factors for Bullish Outlook
Increasing open interest supports a bullish outlook for ETH. More traders are opening long positions, anticipating further price increases. Additionally, spot Ethereum ETFs, particularly BlackRock’s iShares Ethereum ETF, experienced over $4 billion in inflows in July 2025, bringing total ETH ETF holdings to $21.85 billion.
As Ethereum faces resistance at $4,000, the combination of strong technicals, investor optimism, and institutional demand suggests potential for new highs if current momentum continues.