Ethereum (ETH) broke through the $4,000 mark again on Saturday, as the purchase demand from listed companies (viewing ETH as a strategic asset in their reserves) continues to grow strongly.
VX: TZ7971
Demand from Ethereum Holders Drives Price Above $4,000
Ethereum (ETH) has broken through the $4,000 mark for the first time in 8 months, continuing its impressive growth momentum from the past few months into August.
ETH performed poorly at the beginning of 2025, plummeting 65% from $4,107 to just $1,385 between December 16 and April 9. However, as the second-largest cryptocurrency by market capitalization, it is making a strong comeback: rising over 180% from its low point, with more than a 60% increase in just the past month.
The main driver of this recovery is a strong wave of corporate purchases, turning to hold ETH as an asset management asset. Since June, leading enterprises like BitMine Immersion (supported by Thomas Lee from Fundstrat) and SharpLink Gaming (supported by Joe Lubin) have accumulated nearly 2 million ETH using funds raised through billions of dollars in bonds and stocks.
This group may hold up to 10% of the total ETH supply. This is more "attractive" than the developing US ETH spot ETF.
In fact, these ETFs have seen inflows for 12 consecutive weeks since May, with inflows exceeding $5 billion in July alone.
ETH has also benefited from positive regulatory signals. On Tuesday, the SEC confirmed that Liquid Staking does not violate securities laws, providing possibilities for integrating staking mechanisms into ETH ETFs. Major players like BlackRock, Fidelity, and Bitwise are currently awaiting SEC approval.
Ethereum Price Prediction: Testing $4,100 Resistance, Moving Towards $4,500
According to Coinglass data, in the past 24 hours, the Ethereum futures market has seen a total liquidation of $136.74 million, with long positions liquidated at $22.54 million and short positions liquidated at $114.20 million.
After finding a key support level around $3,470 last week, ETH rebounded nearly 15%, breaking through $4,000 for the first time since December 2024. Currently, this Altcoin is approaching the key resistance zone of $4,100 (which previously faced strong selling pressure) and touching the downward trend line extending from the historical high point in November 2021.
If ETH successfully breaks through $4,200, it may complete a "bullish flag" pattern, paving the way for a significant rise to the $4,500 resistance zone, and then aim to retest the record of $4,868.
Conversely, ETH needs to hold the $3,470 support level to maintain its bullish structure. A weekly close below this level could trigger selling pressure, pushing the price back to the psychological level of $3,000, especially if it breaks below the medium-term support of $3,220.
Technical indicators are sending mixed signals: the Relative Strength Index (RSI) is approaching the overbought area, while the Stochastic Oscillator has been in the overbought zone since June. This indicates that the bullish momentum remains strong, but there is also a possibility of a short-term correction.
The current price is approaching a high-density supply zone and is extremely sensitive to news, making it prone to volume-based false breakouts or rapid pullbacks. If the breakout fails and falls below $4,100, the risk of a correction will significantly increase. It is recommended to strictly control positions and avoid chasing highs or entering based on sentiment.
