Ethereum News Today: Ethereum Eyes $3,700 Rebound Amid Key Support Test and $16K Long-Term Outlook

Ethereum's price action around the $3,700 level has become a focal point for analysts assessing whether the cryptocurrency can spark a strong rally in the third quarter of 2025. The recent pullback to $3,625 has intensified discussions over whether Ethereum can reclaim key technical levels and build momentum ahead of a potential breakout [1].

At the heart of the debate is the critical support zone between $3,600 and $3,700. Ethereum has shown resilience near these levels, with some analysts suggesting that a successful defense could lead to a short-term rebound toward $3,784 and $3,899 [2]. These levels represent key resistance points that, if breached, could signal a broader uptrend. However, a breakdown below $3,625 risks a deeper correction toward $3,307, potentially undermining bullish sentiment for the remainder of the year.

On-chain data further complicates the outlook. A net outflow of $113.19 million was recorded on August 1, indicating rising exchange withdrawals and a possible shift in market sentiment [3]. Momentum indicators such as the Directional Movement Index (DMI) and the RSI also suggest that sellers are currently in control, with the RSI hovering near oversold territory and the MACD remaining bearish [4].

Despite the short-term bearish signals, some analysts remain cautiously optimistic about Ethereum’s long-term trajectory. A monthly ascending triangle pattern has emerged on the ETH chart, a formation historically associated with strong breakouts [5]. If Ethereum manages to break above the $4,000 resistance level, some strategists project a potential move toward $15K–$16K, driven by sustained ETF inflows and growing institutional adoption [6].

The current institutional buying trend, supported by 18 consecutive days of spot ETF inflows totaling $5.3 billion, has been cited as a key factor in Ethereum’s fundamental strength. Additionally, Ethereum’s role in Layer 2 solutions and real-world asset tokenization is expanding, which could drive further utility and demand [7]. Meanwhile, staking rewards and validator income remain steady, offering a stabilizing influence on long-term investor sentiment.

Compared to Bitcoin, Ethereum is seeing stronger momentum in terms of Layer 2 adoption and real-world use cases. Analysts argue that this structural advantage, combined with continued ETF flows and staking demand, could allow Ethereum to outperform Bitcoin in the second half of 2025 [8].

Looking ahead, Ethereum faces a critical test of its $3,625 support level. If bulls can hold this level and reclaim $3,700, a short-term push back toward $3,900 could follow. However, sustained resistance above $3,900 may still pose a challenge in the near term. Over the longer horizon, the potential for a multi-digit ETH price remains contingent on Ethereum’s ability to maintain institutional support and expand its technological footprint.

Source:

[1] Ethereum's price holding $3700 could be key to a strong ... https://ambcrypto.com/ethereums-price-holding-3700-could-be-key-to-a-strong-rally-in-q3-why/

[2] Ethereum (ETH) Price Prediction https://bravenewcoin.com/insights/ethereum-eth-price-prediction-ethereum-eyes-3625-rebound-as-triangle-breakout-fuels-16k-price-outlook

[3] Ethereum (ETH) Could Rally to $6000 in Q3, Experts Also ... https://www.mitrade.com/au/insights/news/live-news/article-3-999757-20250731

[4] Ethereum (ETH) and Cardano (ADA) Set to Soar in Q3, but ... https://cryptodaily.co.uk/2025/07/ethereum-eth-and-cardano-ada-set-to-soar-in-q3-but-this-under-0002-token-might-deliver-the-biggest-gains-this-cycle

[5] New Ethereum Price Prediction Targets $17K by 2026. ... https://www.tradingview.com/news/financemagnates:897b8fe31094b:0-new-ethereum-price-prediction-targets-17k-by-2026-could-eth-gain-as-much-as-350/

[6] Ethereum's MVRV Signals $5140 Target if $3300 Support ... https://bravenewcoin.com/insights/ethereum-eth-price-prediction-ethereums-mvrv-signals-5140-target-if-3300-support-holds-strong

[7] Ethereum Soars 150% on ETF Inflows as Cardano Nears ... https://www.ainvest.com/news/ethereum-news-today-ethereum-soars-150-etf-inflows-cardano-nears-1-pepe-gains-meme-driven-momentum-2507/

[8] Profitable Whale Bets Big With 40x Bitcoin, 25x Ethereum ... https://www.aol.com/profitable-whale-bets-big-40x-113149618.html