Ethereum Plunges 6% From $3,800 Peak—Why Analysts Say This Is Your Last Buy Before ATH

Ethereum's rally hits a speed bump—but the bulls aren't backing down.

After briefly kissing $3,800, ETH nosedived 6% in a classic 'buy the rumor, sell the news' move. Traders dumped positions faster than a DeFi rug pull, yet institutional analysts keep waving their 'to the moon' flags.

Here's why the smart money sees this dip as gasoline for the next leg up.

The ATH playbook: History says Ethereum doesn't stop at round numbers. Every 20% correction since 2023 preceded a new all-time high—and with staking yields still outpacing Treasury bonds (sorry, boomers), the calculus hasn't changed.

Watch the $3,500 support like a hawk. Break that, and even the most diamond-handed HODLers might sweat. Hold above it? You're looking at the last discount before ETH starts hunting the $4,000s.

Of course, Wall Street's 'experts' who called $10K ETH back at $4K in 2021 are now hedging their bets. Some things never change.

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.

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.

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