Ethereum is approaching the $4,000 level

Ethereum reached $3,969, adding 5.8% over the day and updating its local maximum. The price increase was accompanied by increased trading activity in other crypto assets: XRP and Dogecoin rose by 10.9% and 7.3%, respectively. The total market capitalization reached $3.03 trillion, increasing by 3% over the day.

The fundamental backdrop for Ethereum continues to strengthen. According to the 7-day moving average chart, the volume of transactions on the network has reached historic highs. July was the most active month in the last 20 months, and the number of new addresses is comparable to the peak in May 2021. The number of validators also continues to grow — there are now more than 1.1 million, and the amount of staked ETH exceeds 36.1 million.

The recovery of interest in spot Ethereum ETFs is also contributing to the price increase. Over the past 24 hours, they have received $222.34 million, marking the third consecutive day of net inflows after a sharp outflow of $465 million. These figures reinforce Ethereum’s position as one of the key beneficiaries of institutional demand.

Analyst Michael van de Poppe believes that Ethereum will soon test the psychologically important level of $4,000. He noted improved sentiment and increased market strength, pointing to the prospects for altcoins to grow by 200–500% over the next 2–4 months. Poppe believes that Ethereum is the leader among risky assets and sets the direction of movement.

Another analyst, known by the nickname Ash Crypto, pointed to a technical signal — a breakout of the upper boundary of the “Falling Wedge” pattern, which is usually interpreted as a bullish sign. However, he cautioned that August and September are historically prone to corrections. In his assessment, the key levels for ETH are support at $3,550 and resistance at $4,100.