Ethereum Reaches New 2025 High, Shorts Wiped Out

Ethereum has reclaimed the $4,000 level for the first time in 2025, reaching a new high of $4,012 on the Bitstamp exchange. The altcoin is up by 8% this month and has surged by over 48% last month. ETH shorts worth $25.7 million have been liquidated in the past 24 hours.

Ethereum (ETH) has reclaimed the $4,000 level for the first time in 2025, reaching a new high of $4,012 on the Bitstamp exchange. This marks a significant milestone for the cryptocurrency, which has been on a strong upward trajectory. Over the past month, Ethereum has surged by over 48%, adding to its 8% gain this month.

The recent price movement has been driven by a combination of factors, including increased institutional interest and strong market sentiment. According to data from Coinglass, a $3800 drop would trigger $1.247 billion in long liquidation pressure, highlighting the high volatility and leverage currently embedded in the market [1]. Conversely, if Ethereum were to break above the $4000 level, the cumulative short liquidation pressure on major centralized exchanges (CEX) would reach approximately $677 million [1].

In the past 24 hours, ETH shorts worth $25.7 million have been liquidated, further indicating the significant short liquidation risk at current price levels. This forced unwinding of leveraged positions could amplify short-term volatility in the leveraged crypto markets. Traders and market participants are advised to monitor these thresholds closely, as crossing these levels could lead to substantial price swings.

The recent surge in Ethereum's price has also been fueled by institutional investment. SharpLink Gaming, a U.S.-based company, has secured a $200 million stock deal that is expected to boost its Ethereum stash past $2 billion [2]. This move comes as Ethereum has managed a 4.61% increase over 24 hours, trading at $3,812.71 according to CoinMarketCap. The increased interest from institutional investors underscores the growing acceptance and confidence in Ethereum as a store of value and a medium for transactions.

Analysts are also optimistic about the potential for a broader altcoin rally. Michaël van de Poppe, co-founder of MN Trading Capital, predicts a 200-500% altcoin rally over the next 2-4 months, driven by Ethereum's recent momentum [3]. The ETH/BTC ratio, a key indicator of Ethereum's strength relative to Bitcoin, has climbed 32% over the last four weeks, signaling a shift in investor interest from Bitcoin to Ethereum and altcoins.

In conclusion, Ethereum's recent price action and institutional investment highlight the growing importance of the cryptocurrency in the financial markets. Traders and investors should remain vigilant around the $4,000 and $3800 levels, as crossing these thresholds could lead to significant short-term price swings.

References:
[1] https://www.ainvest.com/news/ethereum-news-today-ethereum-nears-4000-liquidation-threshold-677m-short-pressure-2508/
[2] https://www.cryptotimes.io/2025/08/08/sharplinks-200m-deal-pushes-eth-holdings-beyond-2-billion/
[3] https://www.mitrade.com/insights/news/live-news/article-3-1024111-20250808