Ethereum News Today: Ethereum Surpasses $4,000 as Layer-2 Rivals Intensify Scaling Competition

Generated by AI AgentCoin World
Monday, Aug 11, 2025 8:33 pm ET1min read
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Aime RobotAime Summary

- Ethereum (ETH) surged past $4,000 for the first time in 2025, driven by institutional buying and rising on-chain activity, signaling strong bullish momentum.

- Key resistance levels at $3,950–$4,000 were breached, with analysts eyeing $4,100–$4,116 as the next target before a potential push toward $5,000 by year-end.

- Record-low exchange balances and SEC-friendly staking guidance boosted network participation, while Layer-2 rivals like Polygon (MATIC) and StarkNet (STRK) intensified scaling competition.

- StarkNet’s upcoming v0.14.0 upgrade aims to enhance scalability, but a 127M STRK token unlock risks short-term price pressure from selling pressure.

- Growing demand for Ethereum-compatible infrastructure highlights shifting market dynamics, with regulatory clarity and institutional adoption shaping 2025’s crypto momentum.

Ethereum (ETH) has broken above the $4,000 level for the first time this year, marking a 2025 high amid strong institutional buying and rising on-chain activity [1]. This price breakout followed ETH’s movement past key resistance levels at $3,950 and $4,000, which traders had closely monitored. Analysts suggest the next critical test lies between $4,100 and $4,116, and if ETH sustains above this range, a push toward $5,000 by year-end is considered possible [1].

The surge in ETH prices has coincided with historically low exchange balances, as holders increasingly transfer coins into long-term storage, signaling reduced selling pressure and stronger bullish sentiment [1]. The U.S. Securities and Exchange Commission’s (SEC) clearer guidance on staking products has further boosted network participation, with staking activity reaching record levels.

Ethereum’s rally has also intensified competition among Layer-2 scaling solutions. Polygon (MATIC) has gained over 6% in the past week, trading near $0.24 following a series of network development announcements. Analysts believe a sustained move above $0.25 could drive additional gains [1]. Meanwhile, StarkNet (STRK) is preparing for its v0.14.0 mainnet upgrade on August 18, which will introduce decentralized sequencing, faster block times, and Ethereum’s EIP-1559 fee model. These improvements are expected to enhance scalability and cost efficiency, potentially increasing the network’s appeal [1].

However, StarkNet investors are cautious ahead of the August 15 token unlock, when 127 million

STRK
tokens become tradable. This could lead to short-term price pressure if early investors decide to sell [1].

The growing demand for Ethereum-compatible infrastructure has drawn attention to alternative projects offering unique value propositions. While Polygon and StarkNet focus on technical scalability, others are exploring cultural and governance-driven narratives. Increased blockchain activity from

Ethereum
,
XRP
, and
Solana
addresses highlights shifting market dynamics as participants seek exposure to emerging opportunities [1].

Analysts suggest that the evolving regulatory environment, rising institutional participation, and scaling innovation could shape the next phase of 2025. As ETH continues to solidify its dominance, the race to capture market share in the scaling layer remains a key driver of crypto market momentum [1].

Source: [1] ETH Smashes $4K — Polygon and StarkNet Join Scaling Race to Capture Market Share (https://coinmarketcap.com/community/articles/689a88a81f3a5b4dc5e17f9b/)