Ethereum News Today: Ethereum's Mid-$3,400 Dip Seen as Temporary Correction Amid $332M ETF Inflow and Whale Buying

Ethereum’s recent price decline to the mid-$3,400 range has drawn attention as a temporary correction within an ongoing bullish trend, according to expert trader DonAlt. The pullback, which occurred amid $197 million in ETH liquidations over 24 hours, has not disrupted critical technical support levels such as $3,300 and $3,080, reinforcing the view that the market remains in a consolidation phase rather than a bearish reversal [2]. DonAlt, noted for his XRP predictions, argues that such retracements are typical in bullish cycles following rapid price surges. Ethereum’s performance since June—remaining above its prior highs despite the dip—underscores its resilience [1].

The correction aligns with broader market dynamics. Over $500 million in liquidations across major cryptocurrencies, including Bitcoin, reflects short-term volatility, yet analysts emphasize that these events do not indicate fundamental shifts. Institutional Ethereum ETFs recorded a net inflow of $332.81 million on July 23, signaling sustained confidence in the asset’s long-term trajectory [1]. Whale activity further supports bullish sentiment, with on-chain data revealing $1.7 billion in ETH accumulation by new market participants as of July 16 [3]. Meanwhile, a significant whale sold 1,085 ETH on July 22 to fund a leveraged Dogecoin position, illustrating shifting risk appetites within the crypto ecosystem [4].

Technical analysis highlights Ethereum’s strength. The cryptocurrency remains approximately 80% above its Q2 lows, with price action aligning with historical patterns observed during bullish cycles [1]. Key support levels have held, and the asset’s containment within an ascending price channel suggests that dips attract buying interest. Options data from July 22 shows a 95% dominance of call options in the altcoin market, reflecting speculative demand for upward movement [7]. Analysts caution against overreacting to short-term fluctuations, noting that the dip does not represent a structural breakdown.

Expert forecasts project continued momentum. A July 23 report cited predictions that Ethereum could reach $4,000, driven by rising institutional interest and ETF demand [5]. This optimism is supported by Ethereum’s 25% surge in a week earlier in July, fueled by $2.6 billion in whale purchases and ETF inflows [6]. While Bitcoin’s recent consolidation below $118,000 has raised questions, Ethereum’s dip is seen as a minor correction relative to earlier gains [9]. The altcoin’s role as a leading asset in the crypto market, coupled with regulatory clarity around ETFs, positions it well for sustained demand.

Investors are advised to approach the correction with caution but not alarm. DonAlt emphasizes that technical indicators and on-chain metrics suggest the uptrend remains intact, with the dip offering a strategic entry point for long-term holders. Monitoring support levels and volume trends will be critical in assessing Ethereum’s next phase. The broader market’s stability, including Ethereum ETF inflows and whale accumulation, reinforces the likelihood of continued upward momentum despite short-term volatility [8].

Sources:

[1] [Daily General Discussion July 23, 2025](https://www.reddit.com/r/ethereum/comments/1m70frj/daily_general_discussion_july_23_2025/)

[2] [Top XRP Trader Speaks out on Ethereum](https://u.today/least-dramatic-drop-ever-top-xrp-trader-speaks-out-on-ethereum)

[3] [Ethereum (ETH) Whales Accumulate $1.7 Billion](https://blockchain.news/flashnews/ethereum-eth-whales-accumulate-1-7-billion-on-chain-data-reveals-massive-buys-by-7-fresh-wallets)

[4] [Crypto Whale Sells 1085 ETH to Open $19.82M Leveraged Long on Dogecoin](https://blockchain.news/flashnews/crypto-whale-sells-1-085-eth-to-open-19-82m-leveraged-long-on-dogecoin-doge)

[5] [ETH on Fire! Analysts Say Ethereum Will Soon Hit $4000](https://www.msn.com/en-in/entertainment/tv/eth-on-fire-analysts-say-ethereum-will-soon-hit-4000-as-short-positions-pile-up/ar-AA1IZrzo)

[6] [Why Ethereum Is Surging: Expert Forecasts, Whale Buying](https://yellow.com/research/why-ethereum-is-surging-expert-forecasts-whale-buying-and-the-future-of-eth-in-2025)

[7] [Altcoin Options Highlights — July 22, 2025](https://medium.com/datadriveninvestor/altcoin-options-highlights-july-22-2025-calls-dominate-as-xrp-leads-the-charge-b274bb031f46)

[8] [Bitcoin Eyes $140K As Bullish Patterns Strengthen](https://financefeeds.com/bitcoin-eyes-140k-as-bullish-patterns-strengthen-2/)

[9] [Bitcoin Stalls Below $118000 As Traders Brace For Deeper ...](https://www.aol.com/bitcoin-stalls-below-118-000-184211992.html)