Ethereum News Today: Ethereum rebounds to $3700 amid rising institutional inflows and market reallocation

Ethereum has recently reclaimed the $3,700 level, marking a notable development in the cryptocurrency market amid ongoing volatility. The price action has drawn attention from both retail and institutional investors, as major exchanges such as Binance and Coinbase reported increased trading volumes and inflows into Ethereum-based products. On-chain metrics indicate a shift in speculative capital, with Ethereum’s open interest dominance rising to nearly 40%, the highest level since April 2023 [1].

The recent price rebound is attributed to a combination of market sentiment and strategic reallocations of capital. Analysts have observed a rotation of funds from Bitcoin to Ethereum, driven by Ethereum’s active network development and perceived long-term growth potential. Institutional inflows into Ethereum-based ETFs have reached $5.3 billion, reinforcing investor confidence and signaling a broader trend of capital redistribution [1].

Market participants are now closely monitoring key resistance and support levels. Ethereum’s price has fluctuated between $3,500 and $3,700 in recent days, with the $3,500 level acting as a critical support zone. Technical indicators show mixed signals, with the Supertrend indicator flipping bearish at $3,639 and the DMI reflecting a decline in bullish momentum [1]. The 4-hour chart reveals Ethereum moving in and out of the upper Bollinger band, highlighting the indecision among traders.

The failure to maintain a breakout above $3,565 has raised concerns about the sustainability of the current rally. A successful close above $3,750 could bring the psychological $4,000 level into play, but a failure to reclaim $3,565 may result in a retest of the 200 EMA at $3,339 and potentially a dip toward the $3,250 Fibonacci support zone [1]. These movements reflect the tug-of-war between bullish and bearish forces in the market.

Broader macroeconomic factors, including U.S. trade policy concerns and a resulting risk-off sentiment, have also influenced Ethereum’s price trajectory. The cryptocurrency stabilized around $3,500 following a nearly 10% decline in the prior week, as global markets adjusted to new trade dynamics [3]. In addition, $50.16 million in Ethereum assets moved into exchanges as of August 4, suggesting some investors are positioning for short-term exits near key resistance levels [1].

Traders are advised to watch for a potential Bollinger squeeze and a confirmed MACD crossover to gain clarity on the next significant move. While the immediate outlook remains range-bound, Ethereum’s ability to hold above $3,500 will be crucial in determining whether the recent volatility is a temporary correction or the start of a more extended bearish phase [1].

Source:

[1] Ethereum (ETH) Price Prediction for August 5 — https://coinedition.com/ethereum-eth-price-prediction-for-august-5-2025/

[2] Bitcoin slips below $115200 as U.S. tariffs rattle markets — https://www.msn.com/en-in/money/markets/bitcoin-slips-below-115200-as-us-tariffs-rattle-markets-ethereum-solana-dogecoin-fall-up-to-8/ar-AA1JHIZb

[3] Mantle price surges as bullish sentiment strengthens — https://www.fxstreet.com/cryptocurrencies/news/mantle-price-forecast-mnts-20-surge-reclaims-key-support-as-bulls-eye-1-202508041559