Ethereum continues to command headlines as Galaxy Digital CEO Mike Novogratz shares a bold new forecast: $4,000 could become the new Ethereum support zone. With ETH currently trading just under that level, investors are watching closely to see whether this critical threshold flips, and what could follow if it does.
In recent interviews, Novogratz emphasized the strength of institutional flows and the growing dominance of ETH within DeFi and Layer 2 ecosystems. But beyond market sentiment, the data seems to support his thesis. Could Ethereum really sustain a breakout, or are we setting up for a major correction?
Ethereum Trading at a Pivotal Level
As of early August, Ethereum is hovering around $3,480 after briefly testing resistance at $3,860. While some short-term sell pressure is visible, confirmed by a red daily candle and slightly increased exchange inflows, most analysts are pointing to a bullish mid-term trajectory.
Source: Trading View
The ascending channel that began forming in mid-May remains intact, and current consolidation above $3,400 may simply be a healthy retracement before further upside. More notably, on-chain metrics such as exchange netflows are showing a steep reduction in sell-side pressure.
Netflow Trends Suggest Long-Term Accumulation
One of the most important indicators supporting the bullish case for Ethereum is the trend in exchange netflows. According to data from CryptoQuant, total ETH netflow has flipped significantly negative over the last several months, implying that large holders are withdrawing from centralized exchanges in favor of long-term storage.
Source: CryptoQuant
This behavior is typically interpreted as a signal of confidence among whales and institutions. Historically, periods of negative netflow have preceded major price rallies, as supply on exchanges becomes limited while demand remains strong.
Institutional Inflows Paint a Bullish Picture
The second major driver of optimism is institutional capital. According to the latest SoSoValue report, Ethereum-linked ETFs and institutional products recorded a massive surge in net assets throughout June and July.
Source: SoSoValue
In July alone, ETH-based investment vehicles saw over $5B in net inflows, a staggering vote of confidence from large players. This influx of capital has helped stabilize price levels around $3,500, even amid volatile macro conditions and regulatory noise in the U.S.
Novogratz attributes this momentum to renewed excitement around ETH’s fundamentals: its deflationary tokenomics post-Merge, the rise of Layer 2s like Arbitrum and Base, and real-world asset (RWA) integrations using the Ethereum Virtual Machine (EVM).
Could Ethereum Hit a New ATH?
To breach the previous all-time high of around $4,870, Ethereum would need to rally another 40% from current levels. While that’s no small feat, the technical structure supports this potential. The market is currently forming a bullish continuation pattern that closely resembles the early stages of its 2021 rally.
More importantly, Ethereum’s positioning as a yield-generating asset in a maturing DeFi economy sets it apart from many altcoins. With staking rewards, token burns via EIP-1559, and a robust dev ecosystem, ETH has both narrative and utility on its side.
Even skeptics are beginning to revise their expectations. Analysts who previously viewed ETH as a laggard compared to Bitcoin now acknowledge that Ethereum has carved out a distinct macro role, especially as regulatory clarity increases and spot ETH ETFs approach potential approval.
Final Thoughts: What’s Next for Ethereum?
Mike Novogratz’s prediction of $4,000 becoming a new Ethereumù support level is bold, but not baseless. The combination of reduced exchange supply, increasing institutional demand, and strong Layer 2 adoption makes this forecast increasingly plausible.
If ETH holds its ground above $3,400 and flips $4,000 into support, we could be witnessing the start of a major leg up. And with macro trends pointing toward higher crypto adoption, Ethereum may be uniquely positioned to lead the next bull wave.
