The Market is Boiling! ETH's Historic Moment
In August 2025, Ethereum surged by 18% in a single day, breaking through the $4,000 mark, peaking at $4,008.96, marking the strongest rebound since the 2022 bull market. This milestone not only signifies ETH's complete recovery from the depths of the bear market but also heralds a paradigm revolution driven by technology in the cryptocurrency market. As a seasoned analyst, I can clearly tell you: this is not an ordinary market fluctuation, but the beginning of the reconstruction of the underlying architecture of the digital economy.
Technological Revolution: The King of the Sharding Era Has Arrived
Ethereum's technological upgrade is rewriting the rules of the blockchain industry. Through Proto-Danksharding (EIP-4844), sharding technology increases the single block data capacity from 1.85MB to 16MB, Layer 2 transaction costs plummet by 80%, and TPS exceeds 100,000 transactions per second—this means DeFi protocols can support millions of users trading simultaneously, and Web3 games and metaverse applications will completely say goodbye to lag. For example, zkSync's testnet has achieved smooth real-time combat for (Axie Infinity), and after the activation of the Hoodi testnet, gas fees dropped by 90%, allowing ordinary users to run verification nodes on their phones. This performance breakthrough gives ETH the real strength to challenge traditional financial infrastructures, and sharding technology is becoming the highway of the digital economy.
Capital Frenzy: Epic Layout of Whales and Institutions
On-chain data reveals the market's craziness: in the past week, 125 million ETH was transferred from exchange wallets to cold storage, with whale addresses increasing their holdings to a historical high. BlackRock's ETHA fund bought 4,841 ETH in a single day, surpassing 3 million ETH in holdings, worth over $11.36 billion. Even more noteworthy is that the Hong Kong company Huajian Medical bottomed out 5,190 ETH at a price of $3,661 per coin, with a single-day floating profit of 14.17 million HKD. This level of institutional 'precise betting' is reshaping ETH's asset attributes—from a speculative target to a strategic reserve akin to digital gold.
Derivatives Market: The Doomsday Judgment for Shorts
The price surge has triggered violent fluctuations in the derivatives market. In the past 24 hours, 8,041 shorts were liquidated, amounting to $92.7651 million, with the largest single liquidation occurring on Binance, valued at $2.4284 million. This 'short massacre' has created a positive feedback loop: price increases → shorts are forced to close positions → buying pressure increases → price rises further. Currently, there is still a massive accumulation of short positions in the $3,100-$3,000 range; if ETH pulls back to this area, it may trigger a second round of 'short squeeze', forming a natural support. Even more shocking is that ETH rose 59% in July, while Bitcoin only increased by 10%, with ETH performing a miraculous comeback in the altcoin season.
Policy Tailwind: The Golden Age of Cryptocurrency
The dramatic shift in the U.S. regulatory environment is rewriting history. The Trump administration's policy to include cryptocurrency in 401(k) retirement accounts paves the way for long-term capital such as pensions to enter the market. More crucially, the SEC's green light for Ethereum-staking ETFs has officially established ETH's legitimacy as an 'income-generating asset'. This policy dividend has directly boosted ETH's on-chain staking rate from 11% before the merge to 42%, with an annualized yield of 4.8%, surpassing traditional government bonds. When institutional investors realize that ETH can enjoy price appreciation while also providing stable returns, this capital migration has become irreversible.
Risk Warning: The Rational Voice Amidst the Frenzy
Despite the bright prospects, investors still need to be vigilant about short-term volatility. BlackRock's transfer of $372 million in ETH to Coinbase Prime may raise market concerns about selling pressure. Technical indicators show that ETH faces historical resistance around $4,100; if it cannot break through with volume, it may retest the $3,940 support. Additionally, the impact of Singapore's DTSP regulations on local crypto businesses, although not affecting the global market, should be monitored for its effect on investor sentiment.
This is the renaissance of cryptocurrency
Standing at the 2025 timeline, I can say without exaggeration: ETH is leading the revolution of value paradigms in human society. When sharding technology enables the blockchain to truly achieve Web2-level performance, when institutional funds reshape the market landscape, and when regulatory policies open up compliant channels, ETH is no longer just a cryptocurrency; it is the underlying operating system of the digital economy and the infrastructure of the Web3 era. Analyst Benjamin Cowen predicts that ETH may reach $7,500 before January 2026, while institutions predict that the price may reach $4,308 by the end of 2025, and in the long term, it may even break $22,000.
Now, I want to hear your thoughts: Do you think ETH can break through the historic high of $4,891? Leave your opinion in the comments and follow me for real-time market analysis and exclusive strategies! This epic narrative of cryptocurrency requires your participation to become more complete.
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