Ethereum News Today: Ethereum Surges 7% to $4,200 as Altcoins Rally on Gamma Squeeze

Ethereum's recent price surge has catalyzed a broader rally across the altcoin market, with several Ethereum-based tokens gaining traction amid heightened investor optimism. ETH reached $4,200 on August 9, marking its highest level since 2021, driven by a gamma squeeze and short liquidations totaling $207 million. The momentum continued into early August, with Ethereum trading above $4,350 for the first time in eight months, signaling a potential shift toward altcoin dominance [3].

The rally has spilled over into Bitcoin, as a surge in altcoin prices appears to have pulled BTC higher after months of stagnation [1]. Analysts suggest that this interplay between major altcoins and Bitcoin may indicate a more balanced market dynamic, with Ethereum acting as a key driver of broader crypto activity [4].

Among the altcoins benefiting from Ethereum’s bullish momentum are ENS Coin and LDO Coin. ENS, a key player in the Web3 space, has seen a modest rise, with analysts noting potential for further gains in the $33 to $50 range. LDO, which has benefited from the SEC’s recognition of liquid staking tokens, surged to $1.62, with some suggesting it could hit $2.49 if current support levels persist. Both tokens are closely linked to Ethereum’s performance, amplifying their potential as the network continues to gain strength [1].

PEPE Coin, a meme coin with significant exposure to Ethereum activity, also appears to be in a favorable position. Although meme coins remain high-risk, PEPE’s recent performance suggests that it could experience rapid growth if it maintains its current momentum. This reflects broader investor confidence in Ethereum-based tokens, particularly those with strong community and utility-driven narratives [1].

The increased trading volume on Ethereum-based networks has also spurred a rise in DeFi activity, with cheaper transaction costs attracting more users to the ecosystem [1]. Bitmine Immersion Technologies (BMNR), a mining infrastructure company, saw its stock rise following Ethereum’s move above $4,400. The company has outlined plans to increase its ownership of the global ETH supply to 5% [2]. Meanwhile, Coinbase is expected to benefit from the renewed interest in Ethereum and altcoins, as institutional demand for ETH staking and trading continues to grow [3].

Analysts have noted that Ethereum-based tokens could play a strategic role in the next phase of the market cycle, particularly if Bitcoin’s dominance wanes. As Bitcoin prepares for a potential new rally, Ethereum and other major altcoins are seen as key players in shaping the direction of the broader crypto market [4]. Institutional confidence in Ethereum has also grown, with ETF inflows and large-scale purchases reinforcing the narrative of a more mature and institutional-grade market [9].

While the rally has been largely driven by market forces and technical indicators, some experts caution that volatility remains high. However, the current momentum suggests that Ethereum and the broader altcoin market are in a phase of consolidation and growth, with further upside potential if the trend continues [5].

Source: [1] "Ethereum Surges 7% to $4200 on Gamma Squeeze and ..." (https://www.ainvest.com/news/ethereum-news-today-ethereum-surges-7-4-200-gamma-squeeze-altcoin-rally-2508/)

[2] "Bitmine Rides Ethereum Rally, Eyes 5% Global Share" (https://www.bitcoinsensus.com/news/business/bitmine-rides-ethereum-rally-eyes-5percent-global-share)

[3] "Institutional Interest In ETH To Benefit Coinbase Says ..." (https://99bitcoins.com/news/altcoins/coinbase-to-benefit-from-institutional-interest-in-eth-says-bernstein/)

[4] "Cryptos to accumulate before the next Bitcoin rally" (https://m.economictimes.com/wealth/invest/cryptos-to-accumulate-before-the-next-bitcoin-rally/articleshow/123259754.cms)

[5] "Altcoin Season Is Here? Experts Weigh In As Ethereum ..." (https://www.thecoinrepublic.com/2025/08/11/altcoin-season-is-here-experts-weigh-in-as-ethereum-eth-price-holds-above-4k/)

[9] "Ethereum Price Prediction: ETH and DOGE Holders Pivot ..." (https://coincentral.com/ethereum-price-prediction-eth-and-doge-holders-pivot-to-layer-brett-for-jaw-dropping-25000-staking-yields/)