Ethereum reaches $4,000, its maximum price for the year
Ether (ETH), the native Ethereum cryptocurrency, is quoted at $4,000, a level not seen since December 2024.
This threshold has historically acted as an upward resistance, and breaking it with enough volume could propel ETH to its historic peak of $4,891, reached in 2021, of which it is currently 20 per cent below.
Despite this progress, ETH has faced challenges in the past to surpass $4,000, while other crypto-accused such as bitcoin (BTC) and XRP have set new records in 2025.
In the image below, you can see that ETH has had several failed attempts to overcome this barrier:
However, the Ethereum ecosystem shows signs of strength. This week, daily network transactions reached an all-time high of 1.74 million, increasing ETH’s demand for commissions. By supply and demand logic, this increase in activity should result in a bullish boost to the price, although this trend is not yet fully reflected in the quotation.
In addition, institutional adoption is transforming the picture for ETH. Yesterday, August 7, holdings of ether in the hands of institutions reached a record 3 million ETH, equivalent to $11.6 billion, according to CryptoNotic data. This represents a growth of 2,500% since April, when 67 entities owned 112,960 ETH.
The appeal of stake, which offers an annual return of about 3 per cent a year, has encouraged companies to fund ETH purchases through debt, such as equity issues or convertible bonds, rather than relying solely on operating income.
On the other hand, Ethereum’s ETFs have resumed a positive performance, with three consecutive days of capital inflows amounting to $330 million. This flow forces the managers of these funds to buy more ETH to support their shares, which drives demand and, consequently, the price of the cryptocurrency.
Added to this is a favorable regulatory environment that, this Friday, is supporting the general rise of the market. The U.S. government, led by Donald Trump, signed an executive order allowing cryptocurrencies to be included in retirement plans, opening the door for billions of dollars to be invested in such assets.
If ETH manages to overcome the resistance of $4,000 with sufficient volume, the road to new historical peaks will be clear, supported by growing activity in its network, institutional interest, and a more favourable regulatory framework.
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