Ethereum Traders Set Sights on $4000 as Rally Gains Momentum

The second largest cryptocurrency by market capitalization has continued its upward trajectory. The asset’s price has surpassed $3,600, reflecting a weekly increase of over 20%.

As of this writing, Ethereum is trading at $3,616 (+5.2% in the past 24 hours), according to [CoinGecko](https://www.coingecko.com/en/coins/ethereum).

The rally was driven by short position liquidations and increased demand for call options.

Data from Coinglass reveals that Ethereum shorts worth $128 million were liquidated in the last 24 hours.

Researcher Shawn Dawson from Derive.xyz stated that market participants are «aggressively positioned for a swift move to $4,000.» He referred to the price surge as a «regime shift» for the asset.

According to his estimates, the probability of Ethereum exceeding $4,000 by the end of July stands at 14%, while the likelihood of hitting $5,000 by the end of 2025 is 27%.

*»Bitcoin is part of the movement, but this rally is driven by Ethereum. The technical landscape, option flows, and liquidations indicate a structural shift,»* Dawson added.

The growth has been supported by positive news from U.S. regulators. The advancement of [cryptocurrency bills](https://forklog.com/news/kongress-ssha-odobril-tri-zakonoproekta-o-kriptovalyutah) has been interpreted by investors as a step toward clearer regulations for the crypto industry. Against this backdrop, the total market capitalization has for the first time [exceeded](https://forklog.com/news/kapitalizatsiya-rynka-kriptovalyut-vpervye-preodolela-rubezh-v-4-trln) $4 trillion.

Analyst Valentin Fournier from BRN noted that «Wall Street’s appetite for crypto funds remains extremely robust.» Spot [ETFs](https://forklog.com/cryptorium/chto-takoe-bitkoin-etf) based on Ethereum attracted $602 million in a single day, while Bitcoin funds secured $523 million.

Fournier cautioned about the risk of market overheating. He believes that new all-time highs could trigger profit-taking and increased volatility. However, he anticipates that the influx of capital from institutional investors and regulatory clarity will sustain the upward trend.

*“The [Fear and Greed Index](https://forklog.com/cryptorium/chto-takoe-indeks-straha-i-zhadnosti-v-kriptovalyutah) is currently at 71 out of 100. This reflects a positive sentiment among investors, but it’s not yet euphoric,”* Fournier explained.

A premium on Ethereum has appeared on Coinbase, indicating a surge in purchases by American whales and institutional investors. Analyst Crypto Dan from CryptoQuant reported this on [his platform](https://cryptoquant.com/insights/quicktake/6879a379674d6651b39bb42f-Ethereum-Surge-in-Buying-from-US-Whales).

He mentioned that the daily inflow into spot ETH ETFs has reached an all-time high, confirming that U.S. investors are «aggressively» accumulating the asset.

Crypto Dan believes the market is not yet overheated. After a short-term consolidation, further price increases for Ethereum are likely.

However, the expert warned that if similar spikes in activity occur in the latter half of 2025, it may indicate overbought conditions. In such scenarios, investors should consider risk management strategies.

To recall, on July 11, Ethereum prices first [exceeded $3,000](https://forklog.com/news/tsena-ethereum-protestirovala-uroven-3000-na-fone-rekordnyh-pritokov-v-etf-ot-blackrock) since February.

Then on July 17, Ethereum [broke the $3,400 mark](https://forklog.com/news/ethereum-probil-otmetku-v-3400-na-fone-rekordnogo-pritoka-v-etf) amid record ETF inflows.

The daily net inflow into BlackRock’s ETHA ETF [reached $546.7 million](https://forklog.com/news/ethereum-etf-ot-blackrock-zafiksiroval-rekordnyj-pritok-sredstv-546-mln).