Ethereum approaches $4,000
29.07.2025
Ethereum is once again in the spotlight of the crypto market. The price of the second-largest cryptocurrency by market capitalization reached $3,930, showing a 3.68% gain in 24 hours. This is one of the highest levels since December of last year. Since the beginning of 2025, ETH has surged by over 60%.
The key growth driver has been the influx of capital into spot Ethereum ETFs. Between July 21 and 25, net inflows into these funds totaled $1.85 billion. Over just 16 days, investors poured $9.3 billion into Ethereum ETFs, bringing total assets under management to $20.66 billion – approximately 4.6% of Ethereum’s entire market capitalization. This trend highlights growing institutional confidence in the asset.
In addition to ETF inflows, corporate purchases have played a significant role. Public companies now hold more than 2.3 million ETH on their balance sheets – nearly 2% of the total supply. Among the most active is Bitmine Immersion Tech, which increased its holdings to 566,800 ETH. SharpLink Gaming also made headlines with a recent purchase of 77,210 ETH. These figures reflect long-term strategies from major players rather than short-term speculation.
Ethereum’s price movement is also showing signs of a potential short squeeze. According to Cointelegraph, a 10% increase could trigger the liquidation of short positions worth around $1 billion. This scenario could rapidly accelerate the price rally if a wave of short covering begins.
From a technical standpoint, Ethereum maintains a solid upward structure. The price is trading above its 50- and 200-day moving averages – a signal many analysts interpret as bullish. Some charts also suggest a potential reversal pattern that could push ETH above $4,000. However, if the price drops below $3,500, a correction down to the $3,300–$3,150 range remains possible.
Analysts caution that despite the current bullish momentum, the overheated media environment might be a warning sign. Surging interest in Ethereum on social media and growing retail enthusiasm have sometimes preceded short-term pullbacks in the past.
Analysts caution that despite the current bullish momentum, the overheated media environment might be a warning sign. Surging interest in Ethereum on social media and growing retail enthusiasm have sometimes preceded short-term pullbacks in the past.
As altcoin activity increases and Bitcoin dominance declines, Ethereum may gain further momentum. Historically, similar conditions have coincided with capital rotation into alternative assets, with ETH often leading the charge.
Overall, the outlook remains balanced: both fundamental and technical indicators support continued growth, but short-term volatility cannot be ruled out. Investors should keep a close eye on the $4,000 level – a critical point that may shape Ethereum’s next move.