Ethereum News Today: Ethereum Dips Below $3,500 Amid Whale Sales and Market Downturn

Ethereum's price slid below $3,500 in late July and early August 2025 amid a broader crypto market downturn, marking a significant correction in the digital asset's value. The decline was driven by increased selling pressure, macroeconomic uncertainty, and significant outflows from large holders, or "whales." On August 2, Ethereum dropped below the key $3,500 threshold, with the price continuing to trade under that level by August 3, reflecting widespread market fatigue [2]. The drop coincided with Bitcoin’s decline of 1.5%, signaling a generalized bearish sentiment in the crypto space [2].

Arthur Hayes, a prominent figure in the crypto industry, contributed to the sell-off by reportedly moving over $100 million in ETH to exchanges, amplifying the downward trend [3]. These whale activities influenced the broader market dynamics, prompting other large investors to follow suit and intensifying the bearish momentum. Retail and institutional investors, however, attempted to capitalize on the price decline by accumulating ETH during the dip [2].

Despite these selloffs, Ethereum bulls are now focused on defending the $3,500–$3,550 support range to prevent further deterioration [6]. Analysts suggest that if the price closes below $3,500, it could indicate the beginning of a deeper correction [7]. Notably, Ethereum briefly reclaimed the $3,500 level on July 29 amid a broader market rally [8], but the upward movement failed to sustain, highlighting the fragility of current bullish attempts.

Interestingly, Ethereum’s decline occurred alongside record inflows into spot Ethereum ETFs, which saw a new benchmark in July with $5.4 billion in net inflows [7]. These inflows suggest continued institutional interest in the asset, with BlackRock’s Ethereum ETF showing no outflows during the period [10], indicating that long-term investors have not lost confidence in the cryptocurrency. Meanwhile, the total crypto market capitalization fell by 1.23% to $3.66 trillion during the same period [5], with Bitcoin also trading below $113,000.

On-chain metrics, such as the MVRV (Market Value to Realized Value) ratio, remain a key tool for investors assessing market confidence and accumulation trends [7]. While the short-term bearish pressure persists, historical patterns suggest that Ethereum has shown resilience post-correction, with large investors often stepping in to accumulate during volatile periods [7].

As the market digests these recent price movements, Ethereum’s ability to retest and hold above $3,500 will be a critical indicator of whether the bearish trend will continue or reverse. The interplay of whale activity, macroeconomic uncertainties, and institutional inflows will likely shape the near-term trajectory of the asset.

Source: [1] Ethereum Price Hovers Below $3500 as BlackRock ETF Shows Zero Outflows

https://themarketperiodical.com/2025/08/03/ethereum-price-hovers-below-3500-as-blackrock-etf-shows-zero-outflows

[2] Ethereum Crashes Below $3.5K as Market Bleeds

https://bravenewcoin.com/insights/ethereum-eth-price-prediction-ethereum-crashes-below-3-5k-as-market-bleeds-is-the-bottom-in

[3] Ethereum News Today: Arthur Hayes Sells $13M in Crypto

https://www.ainvest.com/news/ethereum-news-today-arthur-hayes-sells-13m-crypto-macroeconomic-uncertainty-market-volatility-2508/

[5] Bitcoin and Ethereum Fall 6%-9% as Crypto Market

https://www.ainvest.com/news/bitcoin-news-today-bitcoin-ethereum-fall-6-9-crypto-market-slumps-tariffs-fed-uncertainty-2508/

[6] Manuel - Ethereum Price Prediction

https://m.facebook.com/manuel.guevarra.369210/photos/ethereum-price-prediction-can-bulls-defend-the-3500-support-zone-as-arthur-hayes/735576122688932/

[7] Spot Ethereum ETFs Set A New Record In July With $5.4

https://m.fastbull.com/news-detail/spot-ethereum-etfs-set-a-new-record-in-news_6100_0_2025_3_6405_3

[8] Why Is The Crypto Market Rallying Today?

https://coingape.com/why-is-the-crypto-market-rallying-today/

[9] Top Ethereum News News Today | Binance Square

https://www.binance.com/en/square/news/ethereum-news

[10] Ethereum Price Hovers Below $3500 as BlackRock ETF