📅 July 20, 2025 | New York, USA
Ethereum once again demonstrates why it is the king of smart money: this Saturday, ETH forcefully surpassed $3,800, driven by a wave of whale buying and a fresh influx of capital that is shaking up the DeFi ecosystem and the entire crypto market. According to data published today by CoinDesk, the breakout of this key resistance is no coincidence: large institutional wallets and on-chain whales are absorbing supply at an accelerated pace.
This move reverses weeks of consolidation below $3,500 and fuels expectations that ETH could once again target the psychological zone of $4,000, a level not seen for over a year.
What's driving this surge?
According to analysts, everything points to a combination of factors:
🔹 ETH ETF flows: The launch of new spot investment vehicles is generating silent accumulation by institutional funds.
🔹 Active whales: Large addresses that held ETH for months have begun moving positions to cold wallets, withdrawing liquidity from exchanges and exerting upward pressure.
🔹 On-chain staking: The amount of ETH locked in staking contracts remains at all-time highs, reducing the available liquid supply.
For many traders, the key data is that wallets controlling more than 10,000 ETH have increased their positions by 8% in the last week alone, according to on-chain data verified by CoinDesk.
The Market Reacts
This ETH explosion comes amid a favorable macro narrative: expectations of US rate cuts, pressure to diversify capital following a potential BTC sell-off in the UK, and renewed optimism about DeFi 2.0 infrastructure.
Exchanges such as Coinbase and Binance reported volume spikes of over 30% compared to last week, with clear dominance in ETH/USDT and ETH/BTC pairs, reflecting a capital rotation from Bitcoin to Ethereum.
Furthermore, Layer 2 protocols such as Arbitrum and Base also showed record activity, reinforcing the idea that the Ethereum ecosystem remains the main liquidity magnet for developers, traders, and venture capital funds.
What's next?
Technical analysts see the next clear resistance in the $4,000-$4,200 zone, but warn that this rally could encounter obstacles if the global market encounters regulatory announcements or sharp Bitcoin movements.
However, for many derivatives traders, the signal is clear: whales are setting the floor, and the majority sentiment is bullish as long as liquid supply continues to fall.
Topic Opinion:
Ethereum is not just an asset; it's a network that continues to devour institutional capital, talent, and liquidity. Every time Bitcoin stalls, ETH becomes the natural second bet for large funds seeking exposure to real innovation.
This rally shows that whales remain the invisible puppeteers of the market, absorbing supply when fear dominates and releasing liquidity when everyone hits FOMO.
💬Is ETH heading towards $4,000 just the beginning or will we see a brutal correction?
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