Ethereum surged past $4,000 in early August 2025, fueled by a 50% increase over the previous month and driven by robust institutional ETF inflows and a significant short squeeze [2]. The rise reflects growing institutional confidence, with large players such as Binance contributing to major liquidity shifts in the market [2]. The price movement was accompanied by a sharp increase in network activity, with Ethereum reaching its highest level since December 2024 [5].
The rally triggered massive short liquidations, wiping out $110 million in just one hour as the price broke through the $4,000 psychological level [7]. This short squeeze created significant volatility in the derivatives market, with over $400 million in crypto derivatives liquidated as Ethereum climbed toward $4,000 [4]. On July 31, the price moved from $4,000 to as high as $4,200 within 24 hours, marking one of the fastest climbs in recent months [3].
Market observers attribute this momentum to a broader shift toward altcoins, coupled with U.S. interest rate cut expectations and the SEC-Ripple settlement [2]. Additionally, the SEC’s recent endorsement of liquid staking has encouraged greater institutional participation in Ethereum [6]. Record low exchange reserves indicate strong long-term bullish sentiment, with public companies now holding 1 million ETH, showcasing the asset’s increasing value proposition [2].
Technical indicators suggest a strengthening trend, with bulls focused on maintaining upward momentum [2]. Greg Magadini, Director of Derivatives at Amberdata, noted that if the momentum continues past $4,000, dealers could become net buyers of ETH at higher prices, potentially pushing the price toward $4,400, a key gamma inventory level [2]. However, some analysts have warned of possible short-term corrections amid the rapid price rise, advising traders to remain cautious, particularly with leveraged positions [2].
The broader crypto market appears to be reacting to a combination of macroeconomic and regulatory developments, with Ethereum’s strength acting as a catalyst for the altcoin market [2]. Long-term bulls have tightened their grip after a week that saw the asset rise by 16% from key support levels, signaling a potential shift in market sentiment [7].
Source: [1]https://www.bitget.com/news/detail/12560604904201
[2]https://www.ainvest.com/news/ethereum-news-today-eth-price-soars-4-000-rate-cuts-ripple-settlement-boost-2508/
[3]https://m.economictimes.com/crypto-news-today-live-09-aug-2025/liveblog/123195194.cms
[4]https://www.bitget.com/news/detail/12560604903729
[5]https://www.facebook.com/groups/975512089165165/posts/24094484216841292/
[6]https://m.economictimes.com/crypto-news-today-live-08-aug-2025/liveblog/123173392.cms
[7]https://coinpedia.org/crypto-live-news/
[10]https://www.fxstreet.com/cryptocurrencies
