Ethereum News Today: Ethereum Surpasses $4,800 as ETFs and Layer 2s Fuel $7,000 Run

Ethereum’s price has recently climbed above $4,800, reigniting discussions among analysts and investors about its potential trajectory in the coming months. With Ethereum now surpassing its previous all-time high of $4,891 and reaching as high as $4,946, the asset is experiencing a significant shift in momentum. Institutional interest remains strong, with Ethereum ETFs attracting substantial inflows and Layer 2 activity across platforms like Arbitrum and zkSync contributing to a broader narrative of growth and utility. The renewed investor sentiment is also reflected in key metrics such as network activity, staking demand, and declining exchange reserves, all of which point to a tightening supply environment and growing demand.

According to on-chain and technical indicators, Ethereum’s breakout above the $4,800–$5,000 range has positioned it for further gains. Traders and analysts highlight a clean retest of a descending triangle pattern, which aligns with a potential target of $7,000. The relative strength of Ethereum compared to Bitcoin has also been a notable trend in recent weeks. While Bitcoin’s momentum appears to be stalling near key resistance levels, Ethereum has maintained upward momentum, with analysts suggesting a rotation of capital into the altcoin. This shift in market leadership underscores the broader appeal of Ethereum’s ecosystem and the growing confidence in its long-term value proposition.

Several technical signals reinforce the bullish case for Ethereum. Momentum indicators such as the MACD and ADX remain positive, while the RSI stands near 65, indicating strength without overbought conditions. Bollinger Bands show increased volatility, a common precursor to sharp price moves. Arthur Hayes, co-founder of BitMEX, has expressed optimism, noting that the breakout above $4,000 signals a reversal trend and potential accumulation phase. Analysts also highlight the importance of holding above the $4,800–$5,000 zone, as a sustained breakout could open the door to targets of $6,000 and eventually $7,000 before the end of 2025.

From a macroeconomic perspective, Ethereum’s appeal is further supported by its staking ecosystem, where validator rewards continue to attract capital. Layer 2 solutions have also helped reduce gas fees relative to previous cycles, making the network more accessible and cost-effective for users. As Ethereum’s market capitalization exceeds $500 billion, it is now eligible for inclusion in more public funds, potentially accelerating capital inflows. These developments are viewed by many as long-term catalysts for Ethereum’s price action.

Despite the optimism, analysts caution that volatility remains a risk. Historical precedent shows that Ethereum can experience sharp corrections after reaching new highs, as seen in prior cycles. A large weekly candle and the unusual timing of the breakout—during a weekend—also raise concerns about potential retracements as liquidity returns. However, the broader technical and fundamental factors suggest that Ethereum is well-positioned for continued growth, provided it maintains its current upward trend.

Ethereum’s price action continues to draw attention from both retail and institutional investors. As the market enters uncharted territory, the focus remains on key resistance and support levels, with traders closely monitoring whether Ethereum can sustain its rally above $4,800. If successful, the path to $7,000 appears more accessible than ever, fueled by ETF inflows, technical strength, and growing ecosystem utility.

Source: [1] Ethereum Could Hit $7000 if Q4 Resistance Levels Break (https://bravenewcoin.com/insights/ethereum-eth-price-prediction-ethereum-could-hit-7000-if-q4-resistance-levels-break) [2] As ETH Breaks Above USD4,900, Analyst Sums Up Crypto Market: BTC Is Exhausted, ETH Isn’t (https://www.coindesk.com/markets/2025/08/24/as-eth-breaks-above-usd4-900-analyst-sums-up-crypto-market-btc-is-exhausted-eth-isn-t)