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Ethereum’s Bullish Surge: $5,000 Target in Sight as Key Resistance Retested

Ethereum’s Bullish Surge: $5,000 Target in Sight as Key Resistance Retested

Published:
2025-08-18 08:54:26
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Ethereum (ETH) is on the verge of a significant breakout after successfully retesting the $3,850 resistance level, with analysts predicting a rally to $5,000 in the current quarter. The cryptocurrency has shown remarkable resilience, surging 6.3% amid growing speculation about a U.S. executive order that could pave the way for crypto investments in retirement plans. Often referred to as the 'King of Altcoins,' Ethereum has tested its $3,400-$3,800 range four times since mid-July, even briefly touching a seven-month high. This consistent performance underscores the strong bullish sentiment surrounding ETH, as investors and traders alike anticipate further gains. The potential for institutional adoption, coupled with Ethereum's robust ecosystem, positions it as a standout asset in the crypto market. As of August 2025, the stage is set for Ethereum to make a decisive move toward its $5,000 target, marking a new milestone in its upward trajectory.

Ethereum Breakout Nears as Key Resistance Retested, $5,000 Target in Sight

Ethereum's ETH is poised for a potential breakout after retesting the $3,850 resistance level, with analysts forecasting a rally to $5,000 this quarter. The cryptocurrency surged 6.3% amid speculation of a U.S. executive order that could open retirement plans to crypto investments.

The so-called King of Altcoins has tested its $3,400-$3,800 range four times since mid-July, briefly touching a seven-month high of $3,941 last week before retreating. Market observers note the pattern mirrors previous breakout setups that preceded major rallies.

Regulatory tailwinds may provide the catalyst. Reports suggest the Biden administration could revise retirement investment rules, potentially unlocking access to the $12.5 trillion 401(k) market for digital assets.

Ethereum's $4,000 Resistance: A Battle Between Options Traders and Hedge Funds

Ethereum's struggle to break the $4,000 barrier reveals a deeper market dynamic. Despite a 40% rally in May and July, the altcoin has repeatedly faltered at this level, signaling strong resistance. Market analysts point to hedge funds as the invisible hand suppressing the price.

Options traders face off against these institutional players in a high-stakes game. Hedge funds, short on Ethereum, profit by keeping prices below $4,000. As option writers, they collect premiums from bullish traders betting on an upside breakout. This tension creates a pivotal battleground for ETH's next major move.

The $4,000 threshold now represents more than psychological resistance—it's a financial imperative for short-positioned institutions. Ethereum's ability to sustain above this level could trigger a cascade toward its 2021 peak of $4,800, while failure may reinforce the current suppression strategy.

Vitalik Buterin Warns of Overleveraging Risks in Corporate ETH Treasuries

Ethereum co-founder Vitalik Buterin has raised concerns about the growing trend of corporations holding ETH in their treasuries, warning that the strategy could spiral into an overleveraged system. His comments come as 64 entities now collectively hold 3.04 million ETH, valued at $11.88 billion.

During a Bankless podcast, Buterin acknowledged the benefits of ETH as a treasury asset, praising its role in providing diverse investment vehicles. Yet, he painted a stark scenario: a 30% market downturn could trigger cascading liquidations, potentially destabilizing Ethereum's ecosystem.

The warning underscores the delicate balance between institutional adoption and systemic risk. While corporate treasuries lend legitimacy to ETH, their concentrated positions could amplify volatility—a paradox for a network striving for decentralization.

Ethereum Price Prediction: ETH Hitting $6,000 Inevitable, But Retail Traders Can Gain More With Unilabs Staking

Ether's resurgence has reignited bullish sentiment, with analysts projecting a climb to $6,000. Institutional investments totaling $450 million from Sharp LINK and BitMine Immersion Technologies underscore growing confidence in Ethereum's long-term value proposition.

While ETH dominates headlines, Unilabs Finance emerges as a dark horse for retail investors. Its staking mechanism gains traction amid the ICO's momentum, presenting an alternative avenue for yield-seeking traders.

The cryptocurrency currently trades at $3,817, recovering most weekly losses in a single bullish session. This rebound follows a wave of institutional adoption that continues to reshape Ethereum's market dynamics.

Ethereum Transactions Hit Record High Amid Staking Surge and Regulatory Clarity

Ethereum's network activity has surged to unprecedented levels, with daily transactions reaching a record 1.74 million—surpassing the previous peak of 1.65 million set in 2021. The surge coincides with a 163% price rally, driven by growing institutional interest and regulatory developments.

More than 36 million ETH, representing 30% of the total supply, is now locked in staking contracts. This reduction in circulating supply has created upward pressure on prices as market liquidity tightens. The SEC's recent guidance on liquid staking activities has further fueled momentum, clarifying that certain staking receipt tokens do not constitute securities under the 1933 Act.

Institutional players are capitalizing on the regulatory certainty, with platforms reporting increased demand for staking products. The trend reflects a broader shift toward yield-bearing crypto assets as traditional finance seeks exposure to blockchain-based returns.

Fundamental Global Files $5B Ethereum Treasury Plan with SEC

Fundamental Global Inc. has taken a bold step toward institutional crypto adoption, filing a shelf registration with the U.S. Securities and Exchange Commission for a $5 billion self-offering to build an ethereum treasury. The move signals growing corporate confidence in ETH as a reserve asset.

The shelf registration provides flexibility to execute the offering over time, suggesting a strategic, long-term approach to Ethereum accumulation. Such large-scale institutional interest could further validate ETH's position as 'digital oil' in the crypto ecosystem.

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