Despite the correction, Ethereum has strong institutional support that could herald renewed bullish momentum, consolidating its key support and attracting record inflows into ETFs and investment funds.
Over the past week, Ethereum (ETH) has managed to consolidate above the $3.821 support level, marking a gain of more than 50% since the beginning of July. However, in the last few hours, the cryptocurrency's price corrected to $3.500, a pause that has not significantly altered its monthly trend.
Despite this temporary drop, ETH's performance over the past month remains remarkable, with an increase of over 40% according to data from the CoinGecko platform. This resilience has maintained the interest of analysts and traders, who closely monitor the evolution of this digital asset in the market.
According to experts, Institutional interest continues to be one of Ethereum's main strengthsCapital flows into spot ETFs and ETH-based investment funds have sustained market confidence, turning current levels into strategic accumulation zones for long-term investors.
The role of large investors in the price of Ethereum
Ethereum's technical performance follows a pattern reminiscent of previous cycles. After reaching a local high near $3.880, the price corrected to approximately $3.470, where it currently trades. In this area, buyers have actively intervened, creating a solid foundation for a potential rebound.
Key resistance remains at the $4.000 level. According to analysts, a sustained break above this level could trigger a bullish rally toward $4.300 or even higher. However, they warn that before such a move, there is the possibility of a further correction if the price falls toward $3.300.
Last week, several experts pointed out that staying above $3.821 was essential to confirm the uptrend and prevent a steeper decline.
From a technical perspective, Jainam Mehta, a financial analyst at Traders Union, highlighted that Ethereum's hourly chart shows a series of rising lows, indicating that momentum remains positive. He also mentioned that indicators based on the so-called Smart Money Concepts (SMC) reveal a change of character (CHoCH), that is, a trend transition, following the recovery in the demand zone located at $3.742.
These types of signals suggest that major market participants, such as financial institutions and large holders known as "whales," are resuming buying interest in ETH, reinforcing expectations of a potential bullish scenario.
However, beyond the technical analysis, the price action also reflects a narrative of institutional accumulation, supported by on-chain metrics and strategic moves by large investors. These factors support the possibility of a continuation of Ethereum's positive trend in the short and medium term.
Institutional flows become the 'silent engine' of the crypto market.
One of the most significant factors in Ethereum's recent performance has been the increase in institutional flows, especially in ETH-based spot ETFs and investment funds. In the last 4 weeks, Ethereum ETFs have seen net inflows exceeding 5.400 million, almost matching the inflows recorded in Bitcoin-based products during the same period, which were $6.000 billion.
On the other hand, firms such as BlackRock, BitMine Immersion Tech, and SharpLink Gaming have increased their positions in ETH, accumulating more than $1.500 billion each in this digital asset. This investment trend has been interpreted as a clear sign of Institutional confidence in the long-term value of Ethereum.
Additionally, BlackRock's Ethereum ETF, iShares Ethereum Trust (ETH), has maintained zero exits during the recent correction, reinforcing the perception of stability and commitment among large investors. This institutional resilience contrasts with the volatility of the retail market and suggests a solid foundation for future upward movements.
What's Driving Ethereum: Key Factors to Understanding Its Evolution
Ethereum is undergoing a period of profound change, with several factors defining its direction and role in the crypto market.
One of the main drivers is the technological adoptionEthereum's transition to Proof of Stake, along with the implementation of Layer 2 scalability solutions, has increased the network's efficiency and speed, making it more viable and attractive for developers and users.
In addition, the explosive growth of decentralized applications, especially in the field of decentralized finance (DeFi), keeps Ethereum as the leading platform, continually increasing its utility and demand. On the other hand, the arrival of a favorable regulation is bringing clarity and confidence to the sector. Laws like the GENIUS Act, which establishes a clear legal framework for stablecoins, strengthen legal certainty and directly benefit the Ethereum ecosystem.
Similarly, the network activity It is also a key indicator of Ethereum's sustained growth and usage, with more than 40 million transactions per day on average, according to the Ethereum Foundation.
All of these elements together have created a very positive environment for Ethereum, and analysts anticipate that its price could reach $5.000 or higher by the end of 2025, consolidating its position in the crypto market.
Institutional support and fundamentals that drive its next leap
The combination of solid technical support, consistent institutional inflows, and robust fundamentals has led many analysts to predict renewed bullish momentum for Ethereum. On-chain data, such as the growth in the number of storage addresses and the decline in circulating supply, reinforce this optimistic outlook.
Historically, Ethereum has shown significant rallies following similar corrections. In the 2021 bull run, for example, ETH outperformed Bitcoin on a percentage basis, reaching its all-time high just two months after BTC's peak. If this trend continues, Ethereum could be headed for new records.
Furthermore, institutional interest and corporate adoption of Ethereum have grown significantly, redefining its role in the financial market. Companies that previously focused primarily on Bitcoin are now diversifying their reserves by incorporating ETH, which could accelerate its appreciation in the medium term.
With solid fundamentals, constant technological advancements, and growing adoption, Ethereum is positioned as one of the most promising assets within the crypto ecosystem. If it manages to overcome the critical resistance of $4.000, it would forge a path to new highs, driven by a narrative based on confidence and strategic accumulation.
