Ethereum Drops 6% After Hitting $3,800, But Analysts See New ATH Ahead

Ethereum (ETH) dropped over 6% in the past 24 hours, sliding to around $3,630 after briefly touching the $3,800 mark.

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The pullback comes after a robust July rally, which saw the world’s second-largest cryptocurrency surge more than 50%, its best monthly gain in three years.

Despite the recent dip, on-chain data suggests the uptrend may not be over. Glassnode’s latest analysis points to a potential new all-time high (ATH) of $4,900, fueled by bullish investor sentiment, growing ETF inflows, and rising open interest (OI) in futures markets.

Glassnode Points to a $4,900 Ethereum Target

According to Glassnode, Ethereum is trading near its March 2024 levels, yet unrealized profits remain comparatively lower. This divergence implies a large upside potential as investors are not yet cashing out, signaling confidence in further gains.

The firm’s analysis shows that if unrealized profits reach the same levels as in 2024, ETH would likely climb toward $4,900, marking a new ATH and testing the critical psychological resistance at $5,000.

This could reflect a growing shift in how investors treat Ethereum, from a speculative token to a core financial asset.

ETH's price records a small decline on the daily chart. Source: ETHUSD on Tradingview 

Open Interest and ETF Demand Reinforce Bullish Outlook

Rising open interest further supports Ethereum’s bullish case. Crypto futures data indicates that more traders are opening long positions on ETH, reflecting expectations of further upside. Ethereum’s OI has been a key contributor to the broader altcoin market rebound.

Moreover, spot Ethereum ETFs, especially BlackRock’s iShares Ethereum ETF, saw over $4 billion in inflows in July 2025, pushing total ETH ETF holdings to $21.85 billion. The surge underscores Ethereum’s rising status among institutional investors and may amplify future price movements.

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With Ethereum facing resistance at $4,000, the convergence of strong technicals, investor optimism, and institutional demand paints a promising outlook. If momentum continues, ETH may soon chart new territory above its previous highs.

Cover image from ChatGPT, ETHUSD chart from Tradingview