In this crypto cycle, several mainstream cryptocurrencies have successfully broken historical highs, and Ethereum (#ETH), as the second largest cryptocurrency in the world, has not yet achieved this feat but is quickly narrowing the gap with the historical high of 2021.
Now, ETH is just one step away from setting a new record.
Price trend: From the low point of correction to breaking $4,200, a 200% increase in four months
The 4-hour chart shows that ETH's recent trend has been quite dramatic. After the U.S. election at the end of 2024, ETH rose along with the market, but when BTC broke through $100,000 to reach a new high, ETH's gains were hindered around the $4,000 mark, with multiple attempts to break through failing.
The correction at the beginning of 2025 was particularly severe, with ETH prices dropping below $1,400 at one point. Market sentiment was extremely pessimistic, and some holders chose to sell. However, the situation quickly reversed, and ETH rapidly rebounded to above $2,000, stabilizing for several weeks, after which bullish forces drove the price to continue rising.
At the end of July, ETH once again approached the $4,000 resistance level, and this time it finally broke through — last night, ETH's price soared to $4,200, reaching a new high in three and a half years. This means that in just four months, ETH's price has risen by 200%.
At present, it is only about 15% away from the historical high of $4,900 set in November 2021 (CoinGecko data). If it can break through, it will, like BNB, XRP, and other altcoins, initiate a new trend in this cycle.
Upward momentum: ETF capital inflow + institutional investors increasing positions
The recent strong rise of ETH is driven by multiple factors. First, ETH ETF investors have been frequently increasing their positions, with inflows in July alone exceeding the total of the previous 11 months before the ETF was listed, indicating a strong investment enthusiasm for ETH in the market.
Secondly, multiple companies have invested billions of dollars to increase their ETH acquisitions, combined with the intensive purchases by 'whales' (large investors), together injecting strong momentum into ETH, allowing it to outperform many competitors in recent months.
Currently, the market's attention is focused on whether ETH can break through the historical high of $4,900. Although it is not far from the target, whether it can maintain momentum and become the focus of this cycle still needs time to verify.
