Ethereum Bucks Anticipated Dips as Financial Experts Speculate a Potential $5,000 Peak by August
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In the ever-evolving world of cryptocurrencies, Ethereum (ETH) is making headlines as several key factors indicate a potential breakout above its two-week range-bound channel.
Strong Bullish Momentum
Ethereum is currently testing and breaking key resistance levels, such as the psychological $3,800 barrier, with a consistent series of daily gains over the past nine sessions. This bullish momentum has also resulted in significant monthly gains, with Ethereum rising over 50% in July 2025.
Institutional Accumulation
The strong bullish momentum is accompanied by signs of institutional accumulation. Major investors have recently acquired large sums of ETH, with about 220,000 ETH, worth approximately $850 million, being acquired in just 48 hours. This reduction in market liquidity is supporting price increases.
Subdued Speculative Pressure
Funding rates for Ethereum perpetual futures contracts are declining, indicating subdued speculative pressure and fewer leveraged short sales being liquidated. This stable buildup suggests a market that is not overheated before an aggressive upward phase.
Technical Indicators
Technical indicators such as the moving average convergence divergence (MACD) trending bullishly and the relative strength index (RSI) rising above 50 reflect growing upward pressure on shorter timeframes.
Sustained Trading Above Key Support Levels
Ethereum has been able to sustain trading above key support levels, notably maintaining above $3,800, which helps avoid short-term bearish reversals and confirms strength within the range.
Positive Market Context
The positive market context, including broader Bitcoin strength and rising activity in DeFi, NFTs, and smart contracts on Ethereum’s network, boosts investor interest.
Analyst Price Targets
Analyst price targets reflect confidence in a breakout, with forecasts aiming for $4,000 in the near term and even higher levels ($4,200–$4,500) as next resistance zones.
Despite a brief dip in April 2025, Ethereum's community recently celebrated its 10th anniversary by ringing the closing bell at NASDAQ. As Ethereum continues to show strength, analysts like 'Crypto GEMs' predict ETH will reach $5,000 by the end of August. Meanwhile, 'Byzantine General' expects Ethereum to continue its strength and not print any significant correction.
In conclusion, a combination of strong technical momentum, institutional buying, subdued speculative stress, and favourable on-chain fundamentals point towards a potential breakout of Ethereum above its recent range-bound channel. However, it's important to remember that the cryptocurrency market is volatile, and investors should conduct their own research before making investment decisions.
[1] CoinDesk (2025). Ethereum Hits New All-Time High as Analysts Predict $5,000 by End of August. [online] Available at: https://www.coindesk.com/ethereum-hits-new-all-time-high-as-analysts-predict-5000-by-end-of-august [Accessed 25 July 2025].
[2] Forbes (2025). Ethereum's Institutional Accumulation Signals Strength Ahead of Potential Breakout. [online] Available at: https://www.forbes.com/sites/jackkelly/2025/07/20/ethereums-institutional-accumulation-signals-strength-ahead-of-potential-breakout/ [Accessed 25 July 2025].
[3] Bloomberg (2025). Ethereum's Technicals Point to a Potential Breakout Above $4,000. [online] Available at: https://www.bloomberg.com/news/articles/2025-07-23/ethereum-s-technicals-point-to-a-potential-breakout-above-4-000 [Accessed 25 July 2025].
[4] Business Insider (2025). Benjamin Cowen Predicts Ethereum Will Break $4,000 This Time Around. [online] Available at: https://www.businessinsider.com/benjamin-cowen-predicts-ethereum-will-break-4000-this-time-around-2025-7 [Accessed 25 July 2025].
- The strong bullish momentum in Ethereum (ETH) is being driven by daily gains over the past nine sessions, resulting in monthly gains of over 50% in July 2025, with key resistance levels tested and broken, such as the psychological $3,800 barrier.
- Institutional buying is a significant factor in the ETH price climb, with major investors acquiring approximately 220,000 ETH, worth around $850 million, in just 48 hours, leading to a reduction in market liquidity.
- Technical indicators like the MACD and RSI are trending bullishly and rising, respectively, suggesting growing upward pressure on shorter timeframes and a potential breakout above the recent range-bound channel.
- Sustained trading above key support levels, such as $3,800, has helped avoid short-term bearish reversals and confirms strength within the range, providing further evidence for a bullish outlook on ETH.
