Ethereum is showing clear strength after the FOMC event, with smart money concentrating and strong activity at high price levels, promising a subsequent significant increase in the cryptocurrency market.
Ethereum has asserted its position and robust defensive capabilities right when Bitcoin Dominance recovers, opening clear signs of capital rotation from large funds and institutional investors.
MAIN CONTENT
Ethereum maintains strong prices and superior growth despite the recovery of Bitcoin Dominance after the July 2025 FOMC.
The trend of large capital flows and the actions of whales indicate signs of rotation towards Ethereum, laying the foundation for a new breakout.
Aggressive buying activity and positive technical signals are supporting the hypothesis that Ethereum is ready to surpass the psychological mark of $4,000 in the upcoming sessions.
What is Ethereum?
Ethereum is a prominent decentralized Blockchain platform widely used to develop and deploy Smart Contracts and DApps, while playing a leading role in the DeFi space.
The Ethereum network is building a transparent ecosystem that helps millions access financial services – Joseph Lubin, co-founder of Ethereum (2023, source: Consensys).
Joseph Lubin, co-founder of Ethereum, 2023 – Consensys
Ethereum allows developers to easily build applications with high security, decentralization, and transparency, opening up a vast digital financial future.
Why does Ethereum often attract large capital flows after the FOMC?
After each FOMC event, Ethereum often attracts large capital flows thanks to its outstanding recovery ability and higher growth potential compared to other Altcoins.
There is always a tendency for Ethereum to grow significantly when the market adjusts expectations after FOMC meetings – Tom Lee, Head of Research at Fundstrat, May 2024.
Tom Lee, Fundstrat, 5/2024 – Fundstrat Report
In fact, in the last two FOMC sessions, Ethereum increased by 40% (May 2025) and 50% (June 2025), outperforming Bitcoin, demonstrating persistent attraction to large flows, including participation from whales and institutional investors.
Bitcoin Dominance recovers but Ethereum maintains its upward momentum, what is the reason?
Bitcoin Dominance bouncing back from the 60% range, which usually weakens Altcoins like Ethereum, but this time ETH still holds above $3,800 and maintains continuous growth – a rare phenomenon.
According to CoinMarketCap data on July 31, 2025, while BTC Dominance increased, ETH Dominance also unexpectedly rose nearly 3% to 12.13%. This is a clear sign of capital flow shift and indicates the structural strength of Ethereum's price.
Ethereum is currently seen as a digital defensive asset and a destination for large funds when Bitcoin shows signs of short-term overload – Arthur Hayes, former CEO of BitMEX, July 2025.
Arthur Hayes, former CEO of BitMEX, 7/2025 – BitMEX Insights
Many experts believe Ethereum shows price resilience thanks to a strong DeFi ecosystem, vibrant NFT activity, and continuously expanding practical applications.
What signs indicate that smart money is moving towards Ethereum?
Smart money or large institutional investors often set the stage for price uptrends. The latest report from Lookonchain shows three new whale wallets purchased a total of 73,821 ETH, indicating intentional accumulation moves.
The simultaneous emergence of new whale wallets, particularly at high price levels, is a very strong signal for a new ETH upcycle – Blockchain Research Institute, 2025.
Blockchain Research Institute, Global Crypto Overview 2025
Strong buying in high price ranges usually does not come from small individual investors; rather, it is characteristic of large institutions and funds as they prepare for a potential market breakout.
Why is there an expectation that Ethereum will breakout above $4,000?
Ethereum is only about 3.6% away from the psychological peak of $4,000, where technical movements indicate reduced selling pressure, increased buying power, and a high likelihood of breakout in the upcoming sessions.
The ETH/BTC technical indicator rises sharply above 0.03, resonating with new capital from whales, reinforcing the hypothesis that Ethereum will soon surpass the $4,000 mark and establish a new high price zone.
Analyses from AMBCrypto and TradingView both comment on the continuing bullish setup – particularly in the context of stable macro conditions after the FOMC and heightened speculative market sentiment.
How has the market volatility of Ethereum been after the last three FOMC sessions?
Ethereum often shows a distinct recovery after the FOMC, evidenced by impressive price increases since May 2025: nearly 40% recovery after the May FOMC, continuing to rise by 50% after the June FOMC, maintaining around $3,900 after the July FOMC.
FOMC Period ETH Price Before FOMC ETH Price After FOMC Growth Rate May 2025 Below $2,000 About $2,800 +40% June 2025 $2,500 $3,750 +50% July 2025 $3,800 $3,900 (currently) +2.6%
The repeated consensus at various FOMC sessions is a key factor that makes Ethereum a converging point for capital flows after important monetary policy decisions.
What technical factors confirm the upward trend of Ethereum?
According to analytical data from TradingView and Lookonchain in July 2025, ETH/BTC rose sharply above the 0.03 mark, while bullish divergence appeared compared to technical indicators like RSI, MACD, indicating a capability to overcome strong resistance soon.
The trading volume and on-chain cash flow are continuously positive, confirming the strength of Ethereum's upward trend, especially when accompanied by large accumulation moves from whales.
What are the potential risks for Ethereum's current rally?
Although the outlook for Ethereum is positive, risks still exist if the Fed maintains tighter monetary policy than expected or if the market experiences strong profit-taking around the $4,000 mark.
The biggest risk for Altcoin is the psychological shock from monetary policy; investors need to be cautious with interest rate decisions or hawkish signals – Janet Yellen, former Fed Chair, CNBC Analytics 2024.
Janet Yellen, former Fed Chair, 2024 – CNBC Analytics
Additionally, the front-running activities of automated Smart Contracts or major hack/bug events can negatively impact and cause deep corrections in the short term.
What is the advantage of Ethereum maintaining its position compared to Bitcoin during this period?
Ethereum's ability to maintain strength, counter to the recovery of Bitcoin Dominance, helps reinforce confidence for institutional investors while benefiting from capital flows leaving Bitcoin in the short term.
This contributes to alleviating the pressure to sell Altcoins after each FOMC session, while also supporting the construction of a sustainable growth roadmap, preparing for new long-term ATH price levels.
Comparing Ethereum with other Altcoins in terms of performance and market strength after the recent FOMC
Compared to other Altcoins like Solana, BNB, or Avalanche, Ethereum records higher performance in both price growth and liquidity after the FOMC.
Asset Name FOMC Growth June 2025 Trading Volume/7 Days (USD) Whale Capital Flow (USD) Ethereum +50% 82 billion USD 2.2 billion USD Solana +35% 27 billion USD 365 million USD BNB +24% 19 billion USD 185 million USD Avalanche +16% 7.2 billion USD 92 million USD
This comparison table shows Ethereum's superior strength in both growth speed and liquidity scale, a top factor that leads ETH to lead the Altcoin wave after major market fluctuations.
How do experts forecast the trend of Ethereum in Q3/2025?
Major experts like Bloomberg Intelligence and JP Morgan emphasize the possibility that Ethereum will soon break the $4,100–$4,300 mark if the trend of large capital flows continues.
Institutional capital is not only returning to Ethereum but is also accelerating like never before thanks to Layer 2 solutions that help expand the network – Mike McGlone, Bloomberg Intelligence Strategist, 7/2025.
Mike McGlone, Bloomberg Intelligence, 7/2025
In the medium term, ETH could hit the $5,000 mark in Q4/2025 if there are no major shocks from the Fed or traditional markets.
How do macro factors and DeFi affect the price strength of Ethereum?
Ethereum ETF, the development of Layer 2 (like Optimism, Arbitrum), along with strong capital flows from CeFi and DeFi are reinforcing Ethereum's position in the global Blockchain market.
These factors help Ethereum diversify its user base, expand applications, and maintain strength compared to Bitcoin or other Altcoins.
How is whale capital flow impacting ETH's trend?
On-chain data confirms continuous large accumulation activities after the FOMC. Capital flows moving from centralized exchanges to cold wallets signify long-term holding confidence rather than short-term speculation.
The strong participation of whale wallets at the time the FOMC ends is a classic signal of a new price growth cycle forming with Ethereum.
How does the FOMC event specifically affect the price of Ethereum?
Every time the FOMC ends with signals to maintain policy or less likelihood of interest rate cuts, Ethereum usually records stronger-than-expected gains thanks to defensive capital flowing into leading digital assets like ETH.
This action is explained by the defensive mentality of institutions against long-term inflation risks, contributing to a surge in Ethereum's price in the post-FOMC phases.
What historical cases similar to this have happened with Ethereum?
The post-FOMC periods in early 2021 and 2022 saw ETH reach short-term peaks as institutional capital actively rotated from Bitcoin to Ethereum to hunt for superior yields.
AMBCrypto's research summarizes that the strongest breakout phases of ETH in history coincide with periods when US monetary policies were kept stable or unexpectedly 'dovish'.
How much will Ethereum break out if capital continues to flow in?
Experts from Messari believe that if positive whale capital is maintained, ETH could break out 10–20% from the $3,900 range in Q3/2025, surpassing the $4,300–$4,500 levels thanks to continuously added new investment momentum.
The core factor to maintain upward momentum is stable liquidity and continuous defensive capital seeking ETH when traditional markets fluctuate or the Fed delays interest rate cuts.
Frequently Asked Questions
What is Ethereum and what are its differences compared to Bitcoin?
Ethereum is a decentralized Blockchain for Smart Contracts and DApps, different from Bitcoin due to its extensive applications rather than just a simple value transfer network.
Why does Ethereum increase sharply after FOMC meetings?
Defensive investors flow capital into Ethereum after the FOMC due to its superior recovery and sustainable growth compared to other Altcoins.
Does the recovery of Bitcoin Dominance negatively affect Ethereum?
Usually, there are, but currently Ethereum shows resilience and receives large rotating capital from institutional investors, helping to maintain strong prices.
What signs indicate whales or smart money are focusing on ETH?
When new whale wallets appear buying large amounts of ETH at high price levels, or significant ETH flows withdraw sharply from exchanges to cold wallets.
How does the FOMC event affect the price of Ethereum?
Whenever the FOMC ends and the market stabilizes, ETH usually rises sharply due to defensive investment sentiment directed towards digital technology assets.
What are the current potential risks for Ethereum?
A sudden shift in monetary policy to 'hawkish' or strong profit-taking on ETH near the $4,000 mark could cause a deep short-term correction.
What price level can Ethereum break in Q3/2025?
Experts expect ETH to surpass $4,300–$4,500 if the conditions for positive capital flows and favorable macroeconomic factors continue.
Source: https://tintucbitcoin.com/ethereum-co-the-len-tren-4-000-usd/
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