Ethereum ($ETH) surged past the $4,000 mark on August 2025, reaching its highest level of the year after a relentless rally that saw it gain nearly 50% over July 2025. Data shows $ETH last traded above this threshold in December 2024 amid a wave of pro-crypto sentiment tied to the U.S. election cycle.
CoinGlass data reveals that the rally caught many bearish traders off guard – short positions on $ETH incurred millions in losses over the last 24 hours as of this writing.
This breakout is powered by a pronounced surge in institutional demand for ETH, particularly as a treasury reserve asset. Over the past month, firms such as SharpLink and BitMine have significantly bolstered their ETH holdings, unveiling multi-billion-dollar accumulation plans.
It’s worth noting that BitKE previously flagged this mounting institutional interest as a critical catalyst. In a recent July 2025 analysis, BitKE has reported that over $700 million in inflows over just one week helped push ETH past $3,400 – well before this breakout above $4,000.
#EthereumETFs are booming!
$726M in inflows in just 1 week has pushed $ETH past $3,400, its highest price since March 2024.
Institutional demand is surging – just like we saw with Bitcoin’s ETF rally earlier this year.
More: https://t.co/MT6dHTGFqK pic.twitter.com/fkN157TJZq
— BitKE (@BitcoinKE) July 17, 2025
Ethereum (ETH) is in the midst of a historic rally, powered by unprecedented institutional inflows into U.S. spot ETFs and a massive short squeeze that has forced bearish traders to unwind billions of dollars in positions.
[TECH] MARKET ANALYSIS | Ethereum Market Cap Grows By Over $150 Billion So Far in July 2025 as Inflows Top $2 Billion: Ethereum (ETH) is in the midst of a historic rally, powered by unprecedented institution.. https://t.co/ZiAUXowdk8 via @BitcoinKE
— Top Kenyan Blogs (@Blogs_Kenya) July 20, 2025
Short squeezes occur when traders betting against an asset are forced to buy back in as prices rise – creating a feedback loop that accelerates gains. This phenomenon has been turbocharged by ETF inflows, creating a self-reinforcing rally as sellers get liquidated and buyers keep accumulating.
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