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Ethereum Experiences Pullback After Weeks of Gains
Ethereum (ETH), the world’s second-largest cryptocurrency by market capitalization, recently fell below the crucial $3,700 mark, prompting investors to question whether its recent bullish run is coming to an end. As of July 22, 2025, ETH has declined by about 2.6% over the past 24 hours, slipping to approximately $3,692 after reaching a weekly high of $3,845. The price briefly touched an intraday low of $3,646 before rebounding to its current levels, mirroring a broader, minor correction throughout the cryptocurrency market.
This sharp move triggered significant liquidations on major crypto exchanges, resulting in a shift in short-term market sentiment. The retreat follows one of Ethereum’s most robust uptrends in 2025. Despite the recent decline, ETH is still up 24% over the previous week and a remarkable 53% over the month, highlighting its strong performance amidst heightened volatility. However, the sudden pullback has cast doubts over the sustainability of the rally and whether ambitious price targets—such as $5,000—remain within reach.
On-Chain Data Signals Strong Profit-Taking Potential
Blockchain analytics add further nuance to the outlook for Ethereum. According to a recent analysis from Sentora, more than 90% of existing ETH addresses are currently at a profit—a level not seen since December 2024. Such high profitability historically increases the risk of large-scale profit-taking, especially as prices consolidate near local highs.
Key Metrics: Daily Activity and ERC-20 Addresses
Despite the slight decline in price, the underlying metrics remain robust. Data from YCharts shows that daily active Ethereum addresses decreased by 2.6% to approximately 526,300, yet this is still 19% higher year-over-year. ERC-20 token address activity fell by 17.6% to about 474,500, suggesting a temporary pause after a period of heightened trading activity, but both figures continue to outpace those seen in 2024.
Institutional Investment Remains a Growth Catalyst
One of the main drivers behind Ethereum’s market resilience is surging institutional interest. Ethereum exchange-traded funds (ETFs) have seen impressive inflows—nearly $297 million in the latest trading day according to SoSoValue. Further, CoinShares reports a record $2.12 billion in capital flowed into ETH-related funds last week alone, contributing to a staggering $6.2 billion in inflows year-to-date. These figures already outstrip all inflows reported in 2024, with year-to-date investment now making up approximately 23% of Ethereum’s total assets under management (AuM). Corporate treasuries continue to play a significant role in these increasing capital allocations.
What Lies Ahead for Ethereum Price Action?
If Ethereum sustains support above the important $3,500 threshold and institutional inflows persist, its bullish momentum could quickly recover. Conversely, a decline in buying pressure may see ETH testing mid-$3,000 levels before attempting another upward move. As crypto investors watch closely, Ethereum’s price action and blockchain trends remain key indicators to monitor for the remainder of 2025.
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