Ethereum News Today: Ethereum Hits Yearly High on Strong Relative Gains and Bullish On-Chain Momentum

Ethereum reached a new yearly high on August 4, 2025, marking a 2.78% daily gain and outperforming Solana, which recorded a modest 1.50% rise during the same period. The price of ETH climbed to $3,556.45, with its market capitalization increasing by 2.77% to $429.29 billion. Over the past month, Ethereum has seen a 30% price increase, far outpacing Solana’s 5% gain, highlighting its strong relative performance in an altcoin-dominated market [1].

Technical indicators suggest Ethereum may be setting the stage for a potential rebound. The Relative Strength Index (RSI) has rebounded to 56.10, moving out of the neutral zone and indicating decreasing sell pressure. The RSI briefly touched 70.41 earlier in the week, signaling overbought conditions as ETH approached $4,000 [1]. Meanwhile, the Moving Average Convergence Divergence (MACD) remains bearish, with the MACD line at 148.72 below the signal line of 217.22. However, the narrowing gap between the two lines suggests a possible bullish reversal, provided the price holds above the $3,500 support level [1].

Ethereum’s on-chain activity also shows signs of bullish momentum. Despite a 21.16% drop in 24-hour trading volume to $21.77 billion, the volume-to-market cap ratio has stabilized at 5.3%. The circulating supply remains at 120.7 million ETH, with no fixed maximum supply, resulting in a fully diluted valuation nearly identical to its current market cap [1].

The broader Ethereum ecosystem has also shown growth, particularly in its Layer 2 solutions. Base, Ethereum’s Layer 2 network, has outpaced Solana in daily token launches, signaling increased developer and user activity. This trend reinforces Ethereum’s position as the second-largest blockchain by market capitalization and highlights its continued appeal to the crypto community [3].

Analysts have noted that Ethereum’s recent performance is not just driven by price action but also by on-chain strength and market sentiment. Whale activity and key network upgrades, such as those improving scalability and reducing gas fees, have contributed to growing optimism. Some analysts have speculated that if current conditions persist, Ethereum could enter a parabolic growth phase in the coming months, though no specific timeline has been provided [2].

While Ethereum’s resurgence is notable, the competitive landscape with Solana remains active. Solana has made gains in total value locked (TVL) and transaction throughput, but Ethereum’s consistent performance and expanding ecosystem suggest it continues to hold a dominant position in the altcoin space. Investors are closely monitoring both networks, with some forecasting sustained growth for Ethereum if the current momentum continues [1].

As the broader cryptocurrency market evolves, Ethereum’s robust infrastructure and active developer community position it well for long-term growth. However, as with any market, conditions can shift rapidly, and investors are advised to maintain a balanced and risk-aware strategy [4].