Ethereum (ETH) Price Prediction: Ethereum Crashes Below $3.5K as Market Bleeds—Is the Bottom In?

Analysts are watching key technical signals as oversold conditions begin to emerge, prompting speculation about whether a rebound is near—or if further losses lie ahead.

Ethereum Faces Sharp Drop Below $3,500

Ethereum (ETH) broke below the crucial $3,500 level in early August, wiping out recent gains and shaking investor confidence. The drop, which saw ETH decline over 4.6% in 24 hours, reflects broader crypto market exhaustion and a wave of risk-off sentiment across digital assets.

Ethereum (ETH) teeters at key support—buyers face a confidence test as short-term pressure mounts but long-term sentiment stays bullish. Source: thecafetrader on TradingView

Ethereum dropped below $3,500 on August 2 as the market showed signs of fatigue and increased selling pressure. As Bitcoin also slipped 1.5% during the same window, many interpreted the move as part of a larger market-wide correction rather than a project-specific reaction.

Arthur Hayes Joins the Sell-Off, Unloads $13.3M in ETH and Other Tokens

Adding fuel to the bearish fire, former BitMEX CEO Arthur Hayes offloaded over $13 million worth of Ethereum, Pepe (PEPE), and Ethena (ENA) tokens, according to on-chain data from Arkham Intelligence.

Ethereum Whales Panic as Market Dives—Over $93M in ETH Floods Exchanges in 48 Hours! Source: @lookonchain via X

In a series of coordinated moves, Hayes converted 2,095 Wrapped ETH into Ethereum and sent 2,373 ETH (worth roughly $8.3 million) to Binance and B2C2, a UK-based trading platform. He also liquidated his entire ENA holdings—over 7.7 million tokens—and transferred 38.86 billion PEPE tokens to Cumberland DRW.

Hayes’ actions follow similar moves by other major ETH holders. On-chain data platform Lookonchain revealed that wallet address “0x3c9E” deposited over 26,000 ETH (valued at $93.6 million) to major exchanges including Binance, OKX, Kraken, and Bybit in the past 48 hours, suggesting more whales are preparing to sell.

Exchange Outflows, RSI, and Oversold Signals Suggest Potential Reversal

Despite the heavy selling, some analysts believe Ethereum may be approaching a bottom. Ethereum’s Relative Strength Index (RSI) and MACD are signaling oversold conditions, historically a precursor to short-term reversals.

Short-term bearish signals hint at a dip toward strong support levels—ideal entry points expected later this year if the market weakens further. Source: @CryptoMichNL via X

Ethereum appears to be in an oversold condition, which could signal a potential market reversal as key technical indicators point to a shift in momentum.

Exchange data further supports the view that many investors are moving ETH off exchanges—possibly into cold storage. Net outflows from centralized platforms on August 1 reached $113 million, a sign that holders might be waiting out the volatility.

Michaël van de Poppe, a widely followed crypto analyst, pointed out that continued withdrawals are “putting downward pressure” on both Ethereum and Bitcoin, but also serve as a sign of investor caution rather than panic.

Ethereum Chart Analysis: Key Resistance and Wait-and-Watch Zone

According to the analyst @bl_ockchain on X, Ethereum recently tested a key resistance area around $4,000 before pulling back. “$ETH needs a strong move above to flip it into support,” he wrote. The token briefly traded at $3,607, just below its breakout level, indicating a hesitation to continue the upward trend.

Ethereum tests a crucial resistance level after breaking long-term support and now trades just below — bulls need a breakout to reach the next targets. Source: @bl_ockchain via X

The Ethereum chart shows a potential long-term breakout from descending resistance, but bulls need to reclaim momentum to confirm the move. Until then, many traders see the current zone as a neutral territory—neither fully bullish nor decisively bearish.

Contrarian Moves: Institutions Buy the Dip as Others Sell

While whales like Hayes are reducing exposure, institutional investors appear to be taking the opposite side of the trade. Nasdaq-listed SharpLink Gaming added 77,210 ETH (worth $295 million) to its corporate treasury in late July, now holding a staggering 438,017 ETH valued at over $1.6 billion.

Ethereum (ETH) has been trading at around $3,478, down 4.02% in the last 24 hours at press time. Source: Ethereum Liquid Index (ELX) via Brave New Coin

Lookonchain also observed that 12 new wallets have purchased 808,347 ETH (around $2.85 billion) since July 9. This includes a single wallet acquiring 16,496 ETH from Galaxy Digital’s OTC desk, suggesting confidence in Ethereum’s long-term value despite short-term volatility.

Analyst Forecasts: $8K–$13K Ethereum Possible by Q4 2025?

Despite the current correction, some analysts maintain a bullish long-term view. Crypto chartist @IamCryptoWolf shared a roadmap suggesting Ethereum could hit $8,000 as a conservative target, and potentially $13,000 or higher by Q4 2025.

Ethereum could rise to $8K or even $13K+, but expect a short dip first before a big move in Q4. Source: @IamCryptoWolf via X

He noted two likely paths: a sharp rise to all-time highs, followed by a 20–25% “washout,” before the real rally begins. “This is the roadmap,” he tweeted, adding that Q4 could be Ethereum’s breakout season if macro and ETF tailwinds hold.

Is the Bottom In for Ethereum?

The Ethereum sell-off comes amid a confluence of bearish catalysts: whale exits, technical rejection at $4K, and broader risk aversion. Yet, signs of accumulation, institutional confidence, and oversold conditions suggest the market could soon stabilize.

Ethereum daily active addresses hit a one-year high before the recent dip below $3,500. Source: Ali via X

Whether Ethereum holds above its current support near $3,400–$3,500 will be critical in the days ahead. A decisive rebound above $3,800 could reignite bullish sentiment, while further downside might test the $3,200–$3,300 zone.

For now, the market waits—watching price levels, tracking whale movements, and scanning technical indicators for signs of a turnaround.