Ethereum Price Prediction: Potential Pullback Looms as BlackRock Doubles Down on ETH Over BTC

• Is Ethereum’s Rally Running Out of Steam?
• Why Is BlackRock Betting Bigger on ETH Than BTC?
• Are Ethereum ETFs Fueling the Fire?
• Where’s Ethereum’s Next Support Zone?
• FAQ: Your Ethereum Questions Answered

Ethereum's price surged over $1,000 in a week, hitting $3,674 before settling at $3,616. Analysts warn of a short-term correction due to overbought conditions, with a potential 11.7% drop to $3,150–$3,200. Meanwhile, institutional interest is booming—BlackRock's $547M ETH buyout dwarfs its Bitcoin investments, signaling a strategic shift. ethereum ETFs also saw $1.3B inflows, fueling bullish sentiment despite technical pullback risks.

Is Ethereum’s Rally Running Out of Steam?

Ethereum’s price skyrocketed 45% in just seven days, leaping from under $2,600 to a local peak of $3,674. As of July 20, 2025, ETH holds above $3,600, but traders are eyeing a correction. The Relative Strength Index (RSI) on daily charts screams "overbought," and analyst Michaël van de Poppe notes the vertical rally lacks structural support. His charts suggest a likely 11.7% retracement to $3,150–$3,200—a zone he calls "long-side liquidity." Historically, weekends see pullbacks after steep climbs, and this one’s no exception. The gap left by ETH’s explosive breakout from its $2,400–$2,800 resistance (now support) needs filling—like a crypto version of gravity.

Why Is BlackRock Betting Bigger on ETH Than BTC?

BlackRock’s latest crypto moves are turning heads. The asset giant scooped up $547M worth of ETH—outpacing its $497M Bitcoin holdings. Adjusted for market cap, that’s five times more ETH than BTC. Arkham Intelligence data reveals BlackRock’s ETH stash ballooned from $156M to $547M since early July, coinciding with Nasdaq’s push to approve its Ethereum ETF. It’s a clear pivot: institutions are waking up to ETH’s staking yields and upgraded infrastructure. Even Bit Digital joined the frenzy, adding 19,683 ETH ($67.3M) to its treasury, now holding 120,306 ETH ($438M). When whales like these accumulate, retail traders should pay attention.

Are Ethereum ETFs Fueling the Fire?

Ethereum ETFs aren’t just a sideshow—they’re driving demand. Over $1.3B flooded into ETH ETFs in two days, propping prices NEAR $3,600. This isn’t just speculation; it’s a structural shift. Van de Poppe highlights ETH/BTC’s bounce from 2020-level support, hinting at an "altcoin season" where Ethereum could outpace Bitcoin. Meanwhile, SharpLink Gaming and others are mirroring BlackRock’s ETH-heavy strategy. The message? Smart money sees ETH as more than just "Bitcoin’s sidekick."

Where’s Ethereum’s Next Support Zone?

Van de Poppe’s analysis pinpoints $3,150–$3,200 as a critical recharge zone—former resistance turned support. ETH’s earlier accumulation under $2,500 set the stage for this rally, but every rocket needs refueling. A dip here could offer a golden entry before the next leg up. As one trader quipped, "Ethereum doesn’t crash—it just takes liquidity naps."

FAQ: Your Ethereum Questions Answered

How low could Ethereum drop in this correction?

Analysts project an 11.7% pullback to $3,150–$3,200 based on RSI and liquidity zones.

Why is BlackRock favoring ETH over BTC?

BlackRock’s $547M ETH buy reflects institutional confidence in Ethereum’s staking rewards and ETF potential.

Are Ethereum ETFs sustainable?

With $1.3B inflows in 48 hours, ETF demand appears robust—but monitor Grayscale’s ETH holdings for red flags.