Ethereum's Value Plummets Yet Soaring Heights Approach as ETFs Record Impressive $534 Million Influx in a Day
Ethereum Prices Remain Optimistic Despite Recent Sell-offs
In a surprising turn of events, Ethereum (ETH) experienced a sudden 4.4% drop on July 22, shedding approximately $16 billion in market cap. However, the outlook for Ethereum prices above $4,000 by September 2025 remains cautiously optimistic, supported by growing institutional demand and developer ecosystem growth.
Despite the recent sell-offs, firms like Fidelity and BlackRock are increasing their Ethereum-related involvement quietly, creating a potential "institutional front-running" scenario reminiscent of Bitcoin’s 2020–2021 rally. This institutional participation is likely to drive prices upward, as suggested by several analyses anticipating Ethereum reaching around $3,800 to $4,000 in the near term.
The increase in GitHub activity is due to teams preparing for upcoming Shanghai upgrades, which reinforce Ethereum’s long-term bullish structure. Layer-2 scaling solutions like Arbitrum and Optimism, along with these upgrades, contribute to growing developer and user demand, strengthening fundamentals beyond speculative trading.
However, technical indicators show occasional overbought conditions, meaning some pullbacks are possible before sustained rallies. Analysts caution about potential retracements to key support levels (around $3,200–$3,600) before new highs are tested.
In the past week, active addresses on the Ethereum network decreased by 8%, but this didn't deter institutional investors. BlackRock's ETHA led with $426.2 million in net inflows, while Grayscale's fund added $72.6 million and Fidelity's ETF attracted $35 million. On July 22, U.S. spot ETH ETFs saw a net inflow of $534 million, marking the third-largest single-day intake on record. Cumulative ETF assets for Ethereum rose over $8.3 billion due to these inflows.
The momentum for payment-focused tokens, such as Remittix, underscores growing demand alongside ETH's resurgence. Over 564 million tokens have been sold for Remittix, raising more than $17 million for real-world remittance trials. Buyers stepped in around $3,500 this week, and Remittix is planning a wallet beta on September 15, 2025.
Despite the short-term volatility, Ether currently has strong technical support around $3,500. The recent pullback led to a supply on exchanges near a two-year low, which is considered a bullish sign.
In summary, institutional interest and developer demand are likely to outweigh recent sell-offs enough to push Ethereum prices to or slightly above $4,000 by September 2025, assuming the current bullish momentum and fundamental drivers persist. However, watch for technical pullbacks and market volatility along the way.
*Sources: [1], [2], [3]
*Note: This prediction assumes broader markets hold above recent lows.
Institutions such as Fidelity and BlackRock are increasing their Ethereum-related investments, which could drive prices upward. This upward trend is supported by several analyses anticipating Ethereum reaching around $3,800 to $4,000 in the near term, despite occasional pullbacks.
