Ethereum Price Plunge: Why ETH Dropped Below $3,700 and What Comes Next
Ethereum’s price has taken a hit, falling below the $3,700 mark as the broader cryptocurrency market experiences a significant 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 factors driving this decline.
Ethereum Price Drops Amid Market Adjustment
As of August 1, 2025, Ethereum’s price has declined by 3.7%, slipping below $3,700. This drop reflects a broader market adjustment influenced by liquidity shifts and institutional activity. Key technical levels, such as the 50% Fibonacci retracement and the 100-hourly SMA, have been breached, amplifying bearish sentiment among traders.
Institutional Inflows Remain Strong Despite Price Drop
Interestingly, institutional interest in Ethereum remains robust. Spot Ether ETFs have recorded a record 19-day inflow streak, signaling continued confidence from big players. This institutional support could act as a stabilizing force against short-term volatility.
On-Chain Data Reveals Shift to Self-Custody
On-chain metrics show a notable trend: exchange-held ETH reserves have decreased by 1 million over the past month. This suggests investors are moving their holdings to self-custody and cold storage, potentially reducing sell-side pressure in the market.
Analysts Divided on Ethereum’s Price Prediction
Experts offer mixed outlooks for Ethereum’s near-term trajectory:
- Bullish view: ITC Crypto’s Benjamin Cowen predicts ETH could break $4,000 soon and reach $5,700-$7,500
- Moderate view: ‘Crypto GEMs’ projects $5,000 by end of August
- Technical view: Current drop may be part of normal correction cycle
Key Takeaways for Ethereum Investors
While the price decline has caused concern, several positive indicators remain:
| Metric | Status |
|---|---|
| Institutional inflows | Record streak continuing |
| Exchange reserves | Declining (bullish signal) |
| Technical support | $3,700-$3,750 holding |
| Q3 performance | Outperforming Bitcoin |
Frequently Asked Questions
Why did Ethereum’s price drop below $3,700?
The decline reflects broader market adjustments, technical breakdowns of key support levels, and increased liquidations on exchanges.
Are institutions still buying Ethereum?
Yes, spot Ether ETFs have seen a record 19-day inflow streak, showing strong institutional demand despite the price drop.
What does the decrease in exchange-held ETH mean?
It suggests investors are moving ETH to private wallets, which typically reduces immediate selling pressure and can be bullish long-term.
What are the key support levels to watch?
The $3,700-$3,750 range remains crucial, with $3,500 being the next major support if that fails.
How does Ethereum’s performance compare to Bitcoin?
ETH has outperformed BTC in Q3 2025, with returns nearly five times higher, though this reflects the broader market rally.
