tl;dr
Ethereum (ETH) surged past $4,000 on August 8, reaching its highest level this year with a nearly 50% monthly gain. The rally surprised bullish traders as short positions lost $134 million in 24 hours. Institutional demand, especially from firms like SharpLink and BitMine holding over 3 million ETH,...
Ethereum (ETH) surged past the $4,000 mark on August 8, reaching its highest level this year after a robust rally that saw it gain nearly 50% in the past month. During US trading hours, ETH peaked at $4,047, marking a milestone not seen since December 2024, a period fueled by optimism following Donald Trump’s election victory which sparked pro-crypto sentiment in the US. This recent upswing took bullish traders by surprise, as short positions against ETH incurred losses totaling $134 million within 24 hours.
The breakout in Ethereum's price has been significantly driven by institutional demand, particularly for treasury reserves. Key players such as SharpLink and BitMine have been actively acquiring large ETH holdings and announcing multi-billion-dollar purchase plans. Collectively, these firms hold over 3 million ETH, approximately 2.5% of the total supply, valued at over $12 billion. BitMine leads with 833,100 ETH, worth around $5.2 billion. Ethereum co-founder Vitalik Buterin has shown cautious optimism about increasing corporate interest, warning against overleveraging which could jeopardize ETH’s stability.
Ethereum’s growing adoption extends into exchange-traded funds (ETFs), with a record $5 billion in inflows during July alone. Data indicate this momentum continues, as Ethereum funds experienced minimal outflows compared to Bitcoin-focused ETFs. Additionally, traditional financial institutions like BlackRock and Robinhood have expanded their Ethereum-related activities, especially in real-world asset (RWA) tokenization.
Looking forward, market confidence around Ethereum remains strong. Prediction markets on Polymarket estimate a 60% chance that ETH will exceed $5,000 by the end of the year, with 36% of traders optimistic about a rise to $6,000 and 24% forecasting $7,000. BitMEX co-founder Arthur Hayes envisions an even more bullish scenario with ETH hitting $10,000, while BitMine's projections set the bar dramatically higher, suggesting an implied price of $60,000.