Ethereum News Today: Ethereum Surges 60% on Fresh Capital Inflows as $4,000 Threshold Looms

Ethereum’s price has surged approximately 60% since late July, reaching $3,850 as of the latest data, with analysts noting $4,000 as a critical resistance level [1]. This rally is attributed to new capital entering the market rather than funds shifting from Bitcoin, a nuance supported by on-chain metrics. Bitcoin’s realized capitalization, which reflects the total value of all Bitcoin based on their last on-chain movement, rose to $1.018 trillion as of July 25, indicating that Bitcoin holders are not divesting to chase Ethereum’s gains [1].

On-chain data from CryptoQuant highlights that Ethereum’s growth is driven by fresh liquidity rather than capital rotation from Bitcoin [1]. This dynamic challenges the assumption that Ethereum’s rise comes at Bitcoin’s expense. Instead, both assets appear to coexist without cannibalizing each other’s value. Bitcoin’s price stagnation during this period aligns with patterns seen in past cycles, where accumulation phases precede significant upward moves [1].

Traders and analysts have emphasized the symbolic importance of the $4,000 threshold for Ethereum. Historical data shows this level has rejected Ethereum seven times since 2021, with a successful breakthrough expected to trigger a "price discovery phase" [1]. Social media commentary from figures like Merlijn The Trader underscores this technical significance, framing $4,000 as a "final boss" that could unlock substantial upside if overcome [1].

The broader market interpretation is that Ethereum’s rally reflects growing institutional and retail adoption, with new participants entering the space without necessarily divesting from Bitcoin. This divergence from a zero-sum framework suggests the cryptocurrency market is expanding rather than reallocating existing capital [1]. CoinGecko data confirms heavy trading volume at $3,817, with the $4,000 level now under intense pressure [1].

For investors, the interplay between Ethereum’s momentum and Bitcoin’s stability signals a maturing market where multiple assets can gain traction simultaneously. Analysts caution that while Ethereum’s price action remains a focal point, the absence of capital outflows from Bitcoin underscores the resilience of the leading cryptocurrency [1].

Source: [1] Ethereum Price Nears $4K as Fresh Capital Flows In, Not at Bitcoin’s Expense, [https://blockonomi.com/ethereum-price-nears-4k-as-fresh-capital-flows-in-not-at-bitcoins-expense/].