Ethereum surges above $4,000 biggest milestone since 2021
Ethereum has officially shattered the $4,000 resistance, marking its highest level since December 2021 and igniting renewed optimism among traders and institutions alike. Fueled by ETF inflows, institutional accumulation, and a powerful technical breakout, ETH’s latest rally is reshaping sentiment across the crypto market.
Institutional Demand and ETF Inflows
The recent surge finds its roots in sustained institutional appetite. Spot Ethereum ETFs have seen remarkable inflows, with BlackRock’s ETHA ETF recording a single-day record of $727 million and total inflows of nearly $2 billion since July. ETHA now holds approximately $6.9 billion in Ethereum.
At the same time, exchange balances have dropped to multi-year lows as more ETH moves into cold storage or is locked in staking contracts. Corporate treasuries are also steadily increasing their ETH holdings, reinforcing the network’s long-term demand foundation.
Adding to the momentum, a short squeeze worth hundreds of millions in liquidations forced traders to buy back ETH rapidly after it broke $4,000, amplifying the upward pressure.
Technical Signals Fueling the Breakout
From a technical perspective, ETH has broken out of a long-term ascending triangle pattern, suggesting targets between $4,350 and $4,500. A weekly close above $4,820 could open the door for a potential run toward $5,000 or beyond.
On August 9, ETH climbed 7% to $4,200 on Binance its highest level in over three years backed by robust trading activity and positive sentiment. On-chain data shows ETH breaking a symmetrical triangle formation, signaling the strength of the new uptrend.
Market Sentiment and Strategic Outlook
Market sentiment is overwhelmingly bullish, with social data indicating nearly twice as many positive as negative mentions of Ethereum following the breakout. Analysts suggest we could see a rotation into altcoins, followed by a surge in Bitcoin, and eventually a “blow-off” top phase where ETH and smaller tokens take center stage.
Institutional confidence remains strong BlackRock’s ETHA ETF reported zero outflows during recent market turbulence while other funds saw redemptions. Additionally, macro trends, such as the GENIUS Act’s passage this summer, are poised to strengthen Ethereum’s role in stablecoin issuance and the broader DeFi ecosystem.
However, traders should remain mindful of potential volatility. Ethereum’s RSI is approaching overbought territory, and upcoming regulatory decisions could trigger sharp price swings.
