Ethereum (ETH), as the second-largest cryptocurrency by market capitalization, has not only excited investors with its recent surge but also prompted ordinary users to reassess their roles and potential in the crypto ecosystem.
The significance of ETH's return to $3,800 $ETH
From the user's perspective, the return of ETH prices to $3,800 is an important psychological and technical milestone. Here are several key points.
1. Boost in market sentiment
For ordinary users (whether holders, traders, or DeFi participants), the ETH price breaking $3,800 is a positive signal. Since June 2025, the ETH price has risen nearly 80% from around $2,100, outperforming most mainstream coins. This upward trend has not only boosted investor confidence but also made ordinary users more optimistic about the future development of the Ethereum ecosystem.
2. Breakthrough of technical barriers
The $3,800 price level is still some distance from the historical high of $4,891 during the bull market on November 16, 2021. For traders, breaking through this threshold may indicate that the market is testing key resistance levels. If ETH can hold above $4,000, technical analysis suggests the next target could be $4,200-$4,500, supported by strong fundamentals.
3. Strong fundamental support:
Expansion of staking scale: Currently, about 30% of ETH has been locked for staking, with over 1.5 million ETH added from June to mid-July alone. This has reduced the circulating supply in the market, driving up prices.
Whale buying: On-chain data shows that large holders have accumulated over 500,000 ETH recently, with most transferred to cold wallets or staking contracts, indicating an intention to hold long-term.
Institutional fund inflows: Ethereum spot ETFs have continued to record net inflows since April 2025, totaling $3.23 billion, indicating increased institutional confidence in ETH.
User perspective: The impact of ETH's rise on different types of users
The return of ETH prices to $3,800 holds different meanings for different types of users. Below is an analysis from the perspectives of several typical user categories:
1. Investors (HODLers)
For long-term ETH holders, price increases mean asset appreciation, while also validating their trust in the future of Ethereum technology. As the underlying infrastructure for DeFi, NFTs, and Web3 applications, the ongoing development of its ecosystem provides confidence for long-term investors.
Impact: The rise in ETH prices may attract more institutions and retail investors, further pushing up prices. However, some users may be concerned about the short-term pullback risks associated with 'overbought' signals.
User action: Continue holding, monitor ETF fund inflows and on-chain data, and look for buying opportunities during pullbacks.
2. DeFi users
DeFi users are core participants in the ETH ecosystem. The rise in ETH prices is usually accompanied by an increase in the TVL of DeFi protocols, as many protocols are priced in ETH.
Impact: A higher ETH price enhances the attractiveness of DeFi projects, but it may also lead to increased Gas fees, affecting the participation costs for small traders.
User action: Choose low Gas periods for transactions or switch to Layer 2 solutions (like Arbitrum, Optimism) to reduce costs.
3. Traders
For short-term traders, the volatility of ETH offers profit opportunities. The breakthrough at $3,800 may trigger more leveraged trading, but indicators like RSI showing overbought conditions also remind users to be cautious of risks.
Impact: Market volatility increases, and traders need to pay attention to technical indicators (such as the next resistance level at $3,987) and on-chain dynamics (such as whale movements).
User action: Set stop-loss points and develop trading strategies based on on-chain data and sentiment in the derivatives market (such as perpetual contract funding rates).
4. Developers and project teams
For teams developing DApps or NFT projects in the Ethereum ecosystem, the rise in ETH prices means greater financing capacity and user engagement.
Impact: A higher ETH value attracts more developers and capital into the ecosystem, but it may also intensify competition.
User action: Developers need to pay attention to the performance improvements brought by Ethereum's Pectra upgrade (such as transaction speed and validator efficiency) to optimize project experience.