Ethereum currently trades at $3,749 as the broader cryptocurrency market experiences a downturn while investors monitor the Federal Reserve’s upcoming interest rate announcement. The world’s second-largest digital asset by market value recently approached the $4,000 threshold, hitting a peak of $3,941 on July 28 before pulling back.
Market observers characterize the recent price decline as a natural consolidation phase that typically occurs before major price movements. Crypto analyst Ali has outlined two potential price scenarios for ETH, targeting levels of $4,220 and $5,140 based on critical support maintenance and MVRV Pricing Bands analysis.
Key Support Level Determines Bullish Path
The analyst identifies $3,300 as the pivotal support zone that will determine Ethereum’s trajectory moving forward. Ali emphasized through social media that maintaining this support level could propel Ethereum toward the $4,220 target, with potential extension to $5,140.
MY VIEW ON $ETH 🔹
I EXPECT A CORRECTION FROM HERE
THERE ARE TWO DEMAND ZONE BELOW
📈We might just fill the void -> $3200
📈We might see demand zone -> $2500
THEN $5K $ETH IS INEVITABLE pic.twitter.com/dAHy05vKdO
— OXSAINT 🛡️ (@oxsaintdotsol) July 29, 2025
Glassnode data reveals that ETH’s +1σ Active Realized Price band establishes a significant upside threshold at $4,500 for the current market cycle. This particular level previously acted as resistance during March 2024 and throughout the 2020-2021 bull run, with historical breakouts above this threshold typically indicating market euphoria and increased structural risk.
Institutional Accumulation Continues
Large-scale investors continue building their Ethereum positions despite recent market volatility. Lookonchain tracking shows a wallet identified as “0x3dF3” recently received 12,000 ETH valued at $45 million from Galaxy Digital’s over-the-counter trading desk.
Since July 9, nine newly created wallets have collectively accumulated 640,646 ETH worth approximately $2.43 billion. Additional whale activity includes a major investor designated “0x4352” withdrawing 20,000 ETH valued at $75.56 million from Binance exchange.
Ali’s recent analysis indicates that some of Ethereum’s largest holders purchased over 220,000 ETH worth $840 million during recent market conditions. Meanwhile, BlackRock’s Ethereum ETF (ETHA) has expanded its holdings to exceed three million ETH valued at $11.36 billion, adding 1.25 million ETH worth $4.73 billion since July 1.
Market Sentiment Analysis
The combination of whale accumulation and institutional inflows suggests underlying strength, though current market conditions reflect cautious sentiment ahead of Federal Reserve policy decisions. Short-term price action may remain volatile as traders position themselves around the critical $3,300 support level.
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