The Ethereum price has delivered an impressive rally in recent days, breaking above the critical $4,000 level. According to the latest on-chain data and market analysis, this move may just be the beginning — with many experts predicting Ethereum could target the $5,000 mark in the coming months.
Short Squeeze Fuels the Rally
The latest price jump was largely driven by a powerful short squeeze. Traders betting against Ethereum were forced to close their positions rapidly, resulting in liquidations worth around $184 million. By comparison, long liquidations totaled only about $24 million — a strong indication of bullish market dominance.
Open interest in ETH futures has also risen significantly, now standing above $51 billion. Historically, when both price and open interest rise together, it signals strong market conviction that the current trend will continue.
Institutional Money is Back
It’s not just retail traders driving this rally — institutional investors are once again showing confidence in Ethereum. In the first week of August alone, Ethereum spot ETFs recorded inflows of roughly $327 million. This renewed institutional interest could prove critical in supporting prices above the $4,000 level and providing momentum toward higher targets.
If Ethereum can break through the resistance zone around $4,430, the previous all-time high of $4,827 would be within reach.
Key Support and Resistance Levels
At the time of writing, the Ethereum price is trading near $4,160. The immediate support level sits at $3,909. Holding above this zone could set the stage for another push toward $4,430.
However, a drop below $3,909 could trigger a deeper correction toward $3,340. Traders should closely watch trading volumes and ETF inflows to detect early signs of trend reversals.
Outlook for 2025 – Is $5,000 Realistic?
Several factors point toward the possibility of Ethereum reaching $5,000 in 2025:
- Strong institutional involvement via ETF inflows
- Bullish technical structure with higher highs forming
- Positive on-chain data showing accumulation and rising demand
That said, the crypto market remains volatile, and sharp pullbacks can occur even in a strong uptrend. Strategic risk management remains key.
Stay ahead with the latest in crypto, startups, and tech – visit Startup News today!
