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Ether tests $4,000

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Ether tests $4,000

The second-largest cryptocurrency has risen 5.8% in the past 24 hours. At one point it touched $3969, setting a local high.

Update:

Ether reached $4012. The asset last traded at such heights in late December last year.

15-minute chart of BTC/USDT on Binance. Source: TradingView.

The asset’s market value is 19.9% below its ATH, according to CoinGecko.

Hourly chart of ETH/USDT on Binance. Source: TradingView. 

Other popular cryptoassets also rallied over the day: XRP and Dogecoin rose 10.9% and 7.3%, respectively.

Top-10 most capitalised cryptoassets. Source: CoinGecko. 

Total market capitalisation stands at $3.03 trillion, up 3% in the past 24 hours.

Improving fundamentals

Ether’s price is rising alongside a revival in on-chain activity. The chart below shows daily transaction volume (7 MA) hitting all-time highs:

On a monthly basis, July was a record for Ethereum. 

The number of new addresses is approaching the all-time high reached in May 2021.

Trend in the number of new Ethereum addresses (7 MA). Source: The Block. 

In staking, validator numbers and the amount of ETH locked continue to rise — now at 1.1 million and 36.1 million, respectively:

Trends in validator count and Ethereum in staking. Source: Dune. 

ETF factor

Net inflows into spot Ethereum ETFs over the past day totalled $222.34 million.

Flow dynamics, trading volume and AUM of spot Ethereum ETFs. Source: SoSoValue.

Positive flows have persisted for three consecutive days after a record $465 million outflow.

Forecasts

Analyst and MN Trading founder Michaël van de Poppe expects Ether to test the $4000 psychological level in the coming days.

“Markets are showing strength, volumes are rising, more volatility is coming, and sentiment [among investors] will improve,” the expert added.

Van de Poppe said he is “sitting” in altcoins, expecting gains of 200–500% in the next 2–4 months.

He considers the segment somewhat undervalued — many bitcoin alternatives “have not yet returned to early-2025 levels”. In his view, Ether’s firm uptrend signals rising appetite for risk.

An analyst going by Ash Crypto flagged a bullish signal — a breakout above the upper boundary of a falling wedge.

However, he noted that August and September are historically bearish months for the crypto market overall. Ash Crypto highlighted resistance and support for Ether at $4100 and $3550, respectively.

Cas Abbe spotted a bull flag on Ether’s daily chart. In his view, confirmation of the pattern would “catapult” the price to a new ATH.

Among other drivers, Cas Abbe also pointed to shrinking exchange supply, institutional accumulation, coin burns and staking.

An investor known as Titan of Crypto set a flag target at $5000. That is just 2.5% above the ATH of $4878 recorded on 10 November 2021, according to CoinGecko.

An analyst known as Wolf did not rule out the realisation of a forecast by Fundstrat co-founder Tom Lee.

“Volatility, disbelief, then verticality,” he wrote in the context of Ethereum’s potential move to $16,000.

In recent weeks, institutions have been buying Ethereum far more actively than retail investors.

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