Ether (ETH) reaches $4,000, aims for price range of $7,000-$8,000

Ethereum, the second-largest cryptocurrency by market capitalisation, is on an upward trajectory towards the $7,000-$8,000 range. This surge is primarily driven by a combination of technical breakout patterns, strong institutional demand, increasing U.S. investor interest, and positive market sentiment linked to macroeconomic factors and network upgrades.

The recent breakthrough of a significant 1.5-year resistance level near $4,100 has ignited bullish momentum among traders and institutions. Holding above $4,300 after this breakout has reinforced this trend, with some forecasts projecting a surge to around $7,000 before year-end 2025.

Institutional investors have aggressively accumulated Ethereum, with purchases exceeding 221,000 ETH (about $1 billion) within one week through OTC desks and custodians like Galaxy Digital and FalconX. Public companies, including BitMine Immersion Technologies, have added significant amounts to their ETH holdings, strengthening demand. Ethereum ETFs have also seen record inflows—about $5.5 billion in July 2025 alone—which channel U.S. investor funds into Ethereum via traditional financial products and improve liquidity and confidence.

Market optimism is buoyed by expectations of a September 2025 Federal Reserve interest rate cut, which has lifted Ethereum prices roughly 30% to near $4,700, just shy of its all-time high. However, analysts caution that some investors may overestimate the likelihood of this easing, suggesting potential volatility if policy tightening persists. Positive sentiment is also supported by improved scalability and institutional confidence from Ethereum network upgrades such as EIP-4844 and the proof-of-stake consensus mechanism.

Advanced AI models projecting Ethereum to surpass $5,000 by August 2025 and even up to $7,500 by year-end contribute to bullish sentiment. These forecasts incorporate technical indicators, staking data, and institutional interest trends. Some high-profile market strategists see Ethereum as a major long-term macro trade, forecasting even higher targets ($12,000–$15,000 in some cases) based on its central role in decentralized finance and asset tokenization markets.

On the technical front, the 4-hour chart suggests Ethereum has been in a reaccumulation phase, consolidating between $3,500 and $3,800. The 100-day moving average is sloping upward after a bullish crossover, adding to the bullish outlook. Technical charts show strength on both daily and short-term timeframes for Ethereum. The market has shown resilience through pullbacks, bouncing back with renewed strength each time.

The coming weeks could test the market's appetite for risk, particularly in the Ethereum market. Any reversal at the current stage seems unlikely without a clear bearish divergence. The RSI on the 4-hour chart is at about 67, indicating strong momentum but an overbought condition.

American buying pressure is acting as fuel to the ongoing rally in Ethereum. The Coinbase Premium Index, which tracks the price difference between Coinbase and Binance, has remained positive since April's rally began, indicating strong demand from American investors. Multiple resistance levels have fallen during the uptrend, indicating market determination. Sentiment data confirms strong buying interest, especially from American investors in Ethereum.

In summary, the interplay of a major technical breakout, record institutional and U.S. investor acquisition, favorable macroeconomic expectations, and bullish AI-driven analytics underpins Ethereum’s strong price momentum towards the $7,000-$8,000 range in 2025. However, potential volatility may arise if policy tightening persists or if investors overestimate the likelihood of a September interest rate cut.

Cryptocurrency investments in Ethereum have gained momentum, with institutional investors aggressively purchasing 221,000 ETH (around $1 billion) in a single week. The technology-driven surge is further facilitated by network upgrades and record inflows into Ethereum ETFs, signifying increased demand from traditional finance.

The cryptocurrency market is influenced by various factors, including macroeconomic expectations, such as anticipation for a September Federal Reserve interest rate cut and improved scalability from Ethereum network upgrades like EIP-4844 and the proof-of-stake consensus mechanism.