Ethereum’s price has broken through the $4,000 barrier, marking a major technical breakthrough and signaling renewed confidence in the cryptocurrency market. The rally is primarily driven by accelerating institutional adoption, substantial ETF inflows, and positive technical indicators suggesting potential for further gains.
New data reveals institutional ETH holdings surged 127% during July, largely attributed to institutional-grade investment products and increased network activity. Concurrently, the ETH/BTC ratio has gained 38% over a 30-day period, demonstrating Ethereum’s relative strength against Bitcoin and potentially benefiting Layer 2 ecosystems.
On-chain metrics indicate robust network utilization, with Ethereum processing 1.74 million transactions on a single day earlier this month – exceeding 2021 bull market peaks. Derivatives markets mirror this bullish sentiment, as aggregate open interest climbed 11.15% to $58.25 billion while options volume surged 72.10% to $3.43 billion. A long-to-short ratio of 3.03 for ETH/USDT perpetual swaps on Binance further underscores overwhelming trader optimism.