Ethereum Surpasses the $4,000 Milestone
On August 8, 2025, Ethereum (ETH) surged past the $4,000 mark—a momentous occasion, marking its return to a price not seen since December 2024 . The breach of this key psychological and technical resistance galvanized bullish sentiment across the crypto market.
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Market Reaction: Liquidations & Whale Activity
The price rally triggered over $119 million in short liquidations within 24 hours, with approximately $24 million wiped out in just one hour .
On-chain metrics show that ETH open interest climbed, nearing a three-year high, and long positions accumulated above $3,850 .
Notably, Ethereum reclaimed dominance in the altcoin space. Its market share rose as Bitcoin's faded, reflecting a shift in investor preference .
Whales also made moves:
> “Just today, a whale bought 10.4K ETH worth $40.5 million via OTC.”
“A whale … bought 1,390 WETH ($5.56M) at $4,000 … deposited … into Aave…”
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Technical Outlook: Resistance & Momentum
Technical indicators suggest that the breakout could be sustainable:
The move above $4,000 has been backed by strong trading volume and evident momentum .
According to Binance analysis, key resistance zones now lie at $4,300–$4,600, with $5,000 as a potential milestone if ETH maintains above $4,000 .
If that level fails to hold, a short-term pullback toward $3,800 may test support .
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Broader Context: Macroeconomic Catalyst
A major macro-level boost came from U.S. policy: On August 7–8, President Donald Trump issued an executive order allowing cryptocurrencies—including Ethereum—to be included in 401(k) retirement plans .
Analysts estimate that even a modest allocation—say 1% of U.S. 401(k) assets—could funnel $100+ billion into crypto, providing sustained inflows and a more stable floor for prices .
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Summary & What’s Next
Category Summary
Milestone ETH broke $4,000 for the first time since December 2024
Market Reaction Massive short liquidations and growing long interest
Technical Outlook Support at $3,800; resistance at $4,300–4,600; $5K possible
Macro Catalyst U.S. allows crypto in 401(k)s, sparking institutional interest
In short, Ethereum's breakout past $4,000 reflects a convergence of bullish factors—from structural technicals and whale activity to macro-level policy shifts. If momentum continues, ETH could well test—and even surpass—the elusive $5,000 level in the near term.
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Let me know if you’d like a more detailed breakdown on technical indicators, ETF inflows, or comparisons to previous bull runs!
