Next key price level is $3,817, with break above potentially flipping market sentiment
Ethereum continues to show strength in the crypto market as it teases the $4,000 mark. The second-largest cryptocurrency by market cap is currently trading at $3,621.30, having bounced nearly 8% this week and reclaiming over 80% of last week’s pullback after reaching a local high of $3,941.
The recent price movement comes after a classic market shakeout that saw a 10% dip, triggering a $10 billion Open Interest flush with over $1 billion in realized profits. This pattern cleared leverage and removed weak hands from the market, allowing ETH to rotate back into its trading range.
On-chain metrics show that while open interest is slightly falling, the funding rate remains positive, indicating that traders maintain a bullish outlook. Large wallets have added over $1.2 billion in ETH since ETF rumors gained traction, adding fuel to price predictions.
Analysts are now looking beyond the current price level, with many suggesting that reaching $10,000 is no longer a question of “if” but “when.” According to analyst Ted (@TedPillows), the next key level to watch is $3,817, and a break above could dramatically shift market sentiment.
Daily trading volume is down 9%, yet ETH remains comfortably within its recent high range. If Ethereum clears the $3,817 hurdle, momentum could carry it toward $4,000 and potentially to new highs by early 2026.
Ethereum’s network activity has reached unprecedented levels. Daily transactions (7-day moving average) hit an all-time high of 1.74 million on August 5th, surpassing even the peak levels seen during the 2021 bull cycle.
July recorded the highest monthly transaction count ever at 46.67 million, while active addresses surged to 683,520. This spike reflects strong DeFi rotation and growing institutional deployment on the Ethereum blockchain.
The increase in network activity aligns with Ethereum’s price action, suggesting a growing demand for block space and utility on the network. This correlation between price and activity is often viewed as a fundamental validation of price movements.
Ethereum’s on-chain throughput, combined with its price reclaiming range highs, points to a shift in momentum that could challenge the cryptocurrency’s historical performance patterns.
Institutional positioning has played a major role in Ethereum’s recent price performance. Corporate Ethereum holdings increased by approximately 127.7% in July to over 2.7 million ETH, now making up nearly half of all ETF-held ETH.
Twenty-four new firms added Ethereum exposure in July, contributing to a 50% rally that positioned ETH as a top large-cap performer. This marked July as a record month for institutional treasury accumulation.
Ethereum is currently just 22% away from its all-time high. With July seeing a 48% gain off a clean reset, the stage may be set for further upward movement.
The ETF approvals have brought new capital into the Ethereum ecosystem, changing the market dynamics and creating sustained buying pressure. This institutional inflow represents a structural shift in how Ethereum is perceived and valued in the market.
Historically, August has been a bearish month for Ethereum, with 60% of the past decade closing negative. However, 2025 appears to be bucking this trend. July, typically a red month, flipped bullish, while Q1’s strong start gave way to a multi-year low at $1,440.
This unusual price action suggests that Ethereum is decoupling from its typical seasonal cycles this year, potentially setting up August for a continuation breakout into price discovery territory.
Ethereum’s rebound of 8% off the $3,900 ceiling this week challenges August’s typical downside bias and could be the first real sign of a monthly trend reversal taking shape.
With Ethereum just 22% off its peak and with on-chain activity breaking records, the next few weeks may determine whether ETH can push toward a new all-time high this month.
