Ethereum News Today: Ethereum Surges 6.57% in 24 Hours Breaking $4,000 Resistance

Ethereum has experienced a sharp price increase over the past two trading days, breaking above the $4,000 psychological level for the first time since December 2024. On Friday, August 8, the price surged past this key resistance and continued rising to $4,200 on Binance the following day. By the time of the latest report, Ethereum was trading around $4,165, representing a 6.57% gain in the past 24 hours. The price movement was supported by a significant increase in trading volume, with over 646,459 ETH traded in a single hour on August 8, nearly tripling the average 24-hour volume [1].

Market analysts attribute much of this momentum to technical developments and shifting investor positions. According to Miles Deutscher, short positions worth approximately $207 million were liquidated in the last 24 hours, accelerating the upward trend. He also emphasized the on-chain wealth effect, where both large and small investors benefit from Ethereum’s rise, potentially increasing demand for riskier tokens [1]. Deutscher further suggested a potential three-phase market rotation, beginning with a surge in altcoins led by Ethereum, followed by a shift to Bitcoin, and ending with a return to Ethereum and smaller tokens [1].

Other analysts have also weighed in on the price action. Michaël van de Poppe described Ethereum’s climb to $4,200 as a “crazy move,” while cautioning that entering the market at current levels could be risky. He noted that Ethereum projects might offer higher returns and highlighted the potential for the asset to reach record highs [1]. Meanwhile, Santiment’s on-chain analysis showed a significant increase in optimistic investor sentiment, with terms like “buy” and “positive” used twice as frequently as “sell” and “negative.” However, the firm warned that overconfidence could lead to short-term pauses in the upward trend [1].

CoinDesk Research’s technical analysis revealed that between August 8 at 07:00 GMT and August 9 at 06:00 GMT, Ethereum rose by approximately 6%, climbing from $3,914.59 to $4,160.29. During the period, prices traded between $3,885.03 and $4,194.53. A second wave of buying on August 9 at 05:00 AM pushed prices to a peak of $4,194.53, supported by a trading volume of 714,461 ETH, far exceeding the daily average. The final hour of the day saw prices fluctuate within a narrow range, indicating the beginning of profit-taking activity [1].

Analysts believe that Ethereum may find short-term support in the $4,155–$4,160 range. However, the broader market remains mixed, with Bitcoin showing little movement despite Ethereum’s strong performance. On-chain data suggests that Bitcoin’s large holders—wallets holding between 10 and 10,000 BTC—have been gradually reducing their holdings since mid-July, a bearish signal that contrasts with Ethereum’s bullish momentum [5].

Looking ahead, the upcoming Pectra Upgrade is expected to play a key role in Ethereum’s future trajectory. This upgrade is designed to improve the network’s scalability and reduce gas fees, making it more accessible and efficient for developers and users alike [4]. Such technical improvements are considered vital for Ethereum’s long-term competitiveness in the evolving blockchain landscape.

On the institutional front, recent on-chain activity showed a major purchase of 1.8 million ETH and the filing of a new $5 billion treasury fund, signaling strong confidence in Ethereum’s future [5]. These types of large-scale transactions are often seen as validation of an asset’s fundamentals and can lead to further price appreciation through follow-through buying.

Ethereum’s recent 50% increase over a month pushed it to a new all-time high for the year, reaching $4,000 on August 8. This performance was supported by a broader market trend, with the cryptocurrency sector attracting $2.67 billion in funding during July [3]. The growing adoption and infrastructure developments are reinforcing Ethereum’s role as a leading blockchain platform.

Despite the strong fundamentals and positive momentum, analysts remain cautious about the broader sentiment environment. Extreme positive sentiment surrounding Ethereum and other major assets like XRP has historically been linked to price tops [5]. While this enthusiasm can drive further gains in the short term, it also raises concerns about overvaluation and the possibility of a correction.

The regulatory environment has also improved for Ethereum, with a recent executive order allowing cryptocurrencies to be included in 401k retirement plans. This move is expected to expand long-term institutional and retail adoption, creating a more stable foundation for future growth [5].

Overall, Ethereum’s recent rally is being driven by a combination of technical upgrades, institutional adoption, and favorable regulatory changes. However, the market remains in a volatile phase, and investors are advised to remain cautious as the price action continues to develop.

Sources:

[1] Sanbase, This Week in Crypto, Full Written Summary: W2 August, https://app.santiment.net/insights/read/this-week-in-crypto-full-written-summary-w2-august-8845

[2] Mitrade, Ethereum's Path to $10000 Now Looks “Unstoppable” After ..., https://www.mitrade.com/insights/news/live-news/article-3-1026324-20250809

[3] FastBull, Crypto Attracts $2.67B in Funding During July, Bolstered by ..., https://m.fastbull.com/news-detail/crypto-attracts-267b-in-funding-during-july-bolstered-4338997_0

[4] CoinCentral, Ethereum and Remittix Prices Poised for Explosive Surge ..., https://coincentral.com/ethereum-and-remittix-prices-poised-for-explosive-surge-as-shiba-inu-lags-behind/

[6] CryptoPotato, XRP, BNB, BTC Have Done It: Is It ETH's Time to Shine Now?, https://cryptopotato.com/xrp-bnb-btc-have-done-it-is-it-eths-time-to-shine-now/