Ethereum News Today: Ethereum Surges Past $4,000 on Strong ETF Inflows and Layer-2 Gains

Ethereum’s price surged past $4,000 for the first time since December 2021, reaching as high as $4,200 in some markets on August 8, 2025 [1]. This breakout was fueled by significant ETF inflows, with ETH-backed funds attracting $222 million in just two days, indicating strong institutional confidence. The rally led to $207 million in short liquidations and marked a shift in market sentiment, as Bitcoin’s dominance dropped below 60%, a sign that altcoins are gaining traction.

The upward momentum was further supported by regulatory developments. The U.S. SEC’s recent clarification around staking activities provided much-needed clarity, reducing regulatory uncertainty and encouraging broader adoption of liquid staking and Layer-2 solutions. This shift has had a cascading effect on Ethereum’s ecosystem, particularly among Layer-2 networks.

Optimism (OP) and Polygon (POL) emerged as the primary beneficiaries of the Layer-2 boom. Optimism saw a 13% gain over the past week, driven by improved DeFi activity and key upgrades that reduced transaction fees and increased throughput. Polygon’s Heimdall 2.0 upgrade helped it outperform the sector, with a 30% weekly increase. Both tokens are now positioned as core components of Ethereum’s scaling infrastructure, with strong developer adoption and growing DeFi inflows.

Other Layer-2 platforms, including Arbitrum, Blast, and Mantle, also participated in the rally. Mantle saw an impressive 50% gain in seven days, while the Layer-2 sector as a whole rose over 6% in early August. This performance underscores the sector’s role in supporting Ethereum’s vision of a low-cost, high-speed blockchain environment [2].

The price action and regulatory developments have created a favorable environment for alternative investment opportunities. While the original text promoted specific presale projects, it is important to distinguish between speculative activity and the broader market trends. The Layer-2 rally is driven by real-world utility and technical progress, with Optimism and Polygon leading the way.

The surge in ETH’s price and the strength of the Layer-2 sector suggest that the crypto market is entering a period of renewed growth and adoption. As institutional and retail investors continue to explore the benefits of Ethereum’s scaling solutions, the ecosystem is likely to see further innovation and expansion in the months ahead.

Sources:

[1] Ethereum Price, ETH Price, Live Charts, and Marketcap – [https://www.coinbase.com/price/ethereum](https://www.coinbase.com/price/ethereum)

[2] Ethereum Fear and Greed Index | Multiple Timeframes – [https://cfgi.io/ethereum-fear-greed-index/](https://cfgi.io/ethereum-fear-greed-index/)