Ethereum News Today: Ethereum surges past $4,550 driven by 51% 30-day rally and $5.4B ETF inflows

Ethereum briefly surged past $4,550 in August 2025 amid a wave of institutional inflows and speculative trading, marking a significant turning point in its recent price trajectory. The rally was underpinned by strong derivatives activity, with futures open interest reaching a record $60.8 billion and a 51% price increase over 30 days. A notable short squeeze on August 9 liquidated over $105 million in short positions in a single day, with Ethereum accounting for 53% of all crypto short liquidations [1]. Options volume also surged by 130%, reflecting heightened bullish sentiment among traders [1].

The movement was primarily driven by robust institutional participation, including ETF inflows that reached $5.4 billion in July, outpacing Bitcoin’s inflows during the same period [1]. Prominent firms such as Bitmine and Sharplink contributed significantly to this inflow, and traders like "Maji Da Ge" generated attention with large spot orders [1]. The ETH/BTC ratio climbed by 38%, further signaling Ethereum’s growing appeal among institutional investors [1].

Despite the strong price momentum, open interest in ETH terms was 11% lower than its July peak, indicating that the rally may be driven more by valuation trends than fundamental strength [1]. On-chain data revealed a mixed picture: while Ethereum’s spot ETFs drew considerable inflows, its Total Value Locked (TVL) declined by 7%, and weekly transaction fees dropped to $7.5 million, trailing behind platforms like Solana and Tron [1].

Market psychology metrics also shifted notably. The Net Unrealized Profit/Loss (NUPL) indicator moved from a “capitulation” to a “belief” phase, reflecting a marked improvement in investor sentiment [1]. However, some skepticism persists. Analyst Steven McClurg of Canary Capital noted, “Ethereum is an older technology,” a statement that underscores ongoing concerns about its long-term viability [1].

From a technical standpoint, Ethereum’s current price around $4,550 presents a critical juncture. Holding above $4,100–$4,200 would signal continued institutional support and potentially set the stage for further consolidation [1]. Key resistance levels lie at $4,400–$4,500, where profit-taking and liquidation risks could emerge [1]. A sustained rise in open interest above $60.8 billion would validate the breakout, while a decline may signal the waning of the rally [1].

The market’s bullish sentiment is further supported by the derivatives market’s skew toward long positions and the selling of out-of-the-money puts [1]. Funding rates remain neutral, but could shift in favor of longs if bullish momentum continues [1].

While the surge has drawn significant attention, underlying on-chain fundamentals suggest a need for caution. The divergence between price and usage metrics highlights the importance of Ethereum demonstrating stronger utility and innovation to maintain its institutional appeal [1]. Analysts like Greg Magadini have speculated that Ethereum could potentially reach $8,000–$10,000 at some point, but such forecasts remain speculative [1].

Source:

[1] Ethereum Breaks $4550: A Crucible of Derivatives and ... (https://www.ainvest.com/news/ethereum-breaks-4-550-crucible-derivatives-sentiment-2508/)