Ethereum Dips Below $3540 Following Resistance Rejection; $10,000 Ambitions Temporarily Postponed as $3539 Support Endures Stress
Ethereum, the second-largest cryptocurrency by market capitalization, has been making headlines recently due to its significant price movements and anticipated network upgrades.
As of now, Ethereum's price stands at around $3,530.30, a 4.5% drop in the last 24 hours. Despite this short-term correction, the cryptocurrency's outlook remains positive, thanks to strong institutional demand and favourable macroeconomic conditions.
The recent launch and inflows into spot Ether exchange-traded funds (ETFs) in the U.S. have absorbed selling pressure, contributing to a 54% surge in Ethereum's price in July 2025. This surge was further boosted by the GENIUS Act, which reclassified Ethereum as a digital asset, providing regulatory clarity that supported institutional investment.
Looking ahead, analyst forecasts are bullish, with some predicting Ethereum could reach $15,000 or even $20,000 by the end of 2025. This optimism is driven by technical chart patterns, increasing institutional adoption, and continued network upgrades.
One such upgrade is the Pectra upgrade, expected in early 2025. This update aims to enhance scalability by improving transaction speeds potentially by over 100 times via sharding and other optimizations. These improvements build on earlier enhancements like the Dencun upgrade in March 2024, which lowered costs and increased throughput.
On-chain data shows large holders and institutions accumulating ETH rather than selling, leading to reduced exchange supply and signaling confidence in its long-term growth potential.
From a broader market perspective, macroeconomic conditions such as the Federal Reserve’s anticipated interest rate cuts, weakening U.S. dollar, and strong growth in global money supply (M3) have created a liquidity environment favourable to risk assets, including Ethereum. Market sentiment indicators like the Fear & Greed Index show optimism, with 70% of days in the past month being positive, supporting upward momentum.
However, it's important to note that short-term volatility and corrections can occur as market dynamics evolve. The current price of Ethereum is influenced by these factors, and investors should be aware of the potential for fluctuations.
In the short term, Ethereum's price may be influenced by its current support zone, with traders re-evaluating their near-term placement in the mid-$3,000s if the cryptocurrency breaks this zone. Support for Ethereum remains intact, potentially leading to a significant move, but it's crucial to keep a close eye on market developments.
In conclusion, Ethereum's future prospects are promising, driven by institutional demand, regulatory clarity, network upgrades, and favourable macroeconomic conditions. However, investors should be mindful of short-term volatility and keep abreast of market developments to make informed decisions.
[1] Source: CoinMarketCap [2] Source: Cointelegraph [3] Source: Glassnode [4] Source: CoinDesk
Cryptocurrency market analysts are optimistic about Ethereum's future, predicting it could reach $15,000 or even $20,000 by the end of 2025. This bullish outlook is driven by factors such as strong institutional demand, regulatory clarity, and ongoing network upgrades.
The recent surge in Ethereum's price, a 54% increase in July 2025, was thanks to the launch and inflows into spot Ether ETFs in the U.S., as well as the positive impact of the GENIUS Act, which reclassified Ethereum as a digital asset. The anticipated Pectra upgrade in early 2025 aims to improve Ethereum's scalability by over 100 times via sharding and optimizations.
