Ethereum has seen a significant increase of nearly 49% in the last four weeks, trading at approximately $3.896 on August 8th.
Some of the market interprets the move as a sign of a solid recovery after a long period of stability, while others see the recent performance as a technical reaction after an oversold period. With new drivers expected by the end of 2025, the upward trend is gaining relevance among institutional and retail investors.
At the time of publication, the price of Ether was quoted at $4.314,89, up 1,5% in the last 24 hours.
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Ethereum ETFs and Institutional Capital Flows
One of the main elements supporting the asset is the performance of Ethereum ETFs, which attracted US$8,7 billion in inflows in their first full year. This steady flow of institutional funding contributes to a solid base of demand, reinforcing confidence in the project. This scenario is supported by significant technical advances, including the Pectra hard fork, implemented on May 7th.
Pectra Hard Fork: Technical Improvements and a Focus on Security
The Pectra update introduced strategic changes to the network's operation. These include increasing validator limits, allowing for expanded staking, and adjustments that reduce gas fee volatility, improving the user experience. The upgrade also laid the foundation for future optimizations, increasing the blockchain's efficiency.
At the same time, the Ethereum Foundation initiated a security overhaul aimed at increasing the network's robustness against the influx of larger amounts of capital. This combination of technical improvements and enhanced security strengthens Ethereum's position as a leading smart contract platform.
Governance dispute and change of stance
In January, a proposal to create a second Ethereum foundation, prompted by criticism that the current administration was overly academically focused, sparked debates about governance. Rather than generating uncertainty, the discussion spurred a more agile and market-oriented response from leadership, boosting participant confidence.
Outlook for the coming months
With continued institutional interest, the successful implementation of technical upgrades, and the perception of management more aligned with market demands, Ethereum enters the second half of 2025 in a favorable position. Although its future trajectory depends on the overall performance of the cryptocurrency market, current indicators indicate potential for continued appreciation.