August 9, 2025, Market Analysis
A new high, Ethereum has risen to $4200, the second highest price since the peak of $4800 in the 2021 bull market, and this is not the first time Ethereum has stood above $4000 since it dropped below $900 at the lowest point of the 2022 bear market. Although previous attempts have stopped just above $4000, this time we are still very confident even though it doesn't quite count as a valid breakthrough. This time, Ethereum has endured nearly a year of abuse, with Vitalik being jokingly referred to as 'V Dog' by everyone. As for the rumors circulating about completing deep wash trading at the low point while simultaneously making a big move to change the controlling parties, I think it has become irrelevant, because now Ethereum is being favored by Wall Street funds, openly attracting buyers.
In the past two days, I heard the most exaggerated comment: Ethereum is a civilization-level innovation! Although it has some joking elements, the market's evaluation of Ethereum has turned 180 degrees, from that disappointing spoiled child back to being the hope of the crypto industry. If calling it a civilization-level innovation is a bit exaggerated, I think it is not an overstatement to say that the Ethereum chain still stands at the forefront of innovation in the crypto industry. If you are a seasoned player in DeFi, you should have noticed that Pendle has recently launched a fee market, allowing for long and short funding rates. On-chain finance is gradually transitioning from the infrastructure era to core regional development, including RWA, stablecoins, etc., which will continue to innovate, and these developments will primarily occur first in DeFi protocols.
Yesterday, a fan asked me if Ethereum would break through first. My answer is that it probably won't because BTC's rebound is relatively weak. Currently, Ethereum's strength seems unstoppable, but of course, if BTC declines, that would be another story. At present, the probability of Ethereum breaking through seems very high. Objectively speaking, the price is not yet considered a valid breakthrough, even though it's a new high, but it's not far from the pressure zone. The criteria for judging a valid breakthrough are a significant penetration or stability for more than three days. Regardless, ETH is still in a strong period, and it is still worth our wait.
The basis for supporting Ethereum's continued rise, besides institutional accumulation, is that the current funding rates are not crazy. With Ethereum reaching new highs, it has also seen a daily increase of over 5 percentage points, almost leading the pack. The funding rate remains stable at 0.01%/8h. Additionally, the altcoin market is more concentrated on a few low market cap new coins with higher control, and the overall market's FOMO sentiment is hardly visible. The current market sentiment resembles the time when BTC had an independent rally, pulling from over 20,000 to over 100,000, seemingly unrelated to retail investors. This shows how many people have given up on Ethereum amid all the criticism over the past year, which makes me more confident in holding my coins for a rise.
Lastly, I want to say that we are lucky to be among the few who hold firm. Thank you for your attention and likes.#ETH突破4000