Ethereum breaks through $4,300! Multiple favourable information stacked up, ETH aims for $4,500 and alt season.

On August 11, the price of Ethereum (ETH) strongly broke through $4,300, reaching a new high since the end of 2021. This wave of pump is not driven by a single event but rather a combination of multiple favourable information factors, including the clarification of regulations on liquid staking, optimistic sentiment towards ETFs, a surge in L2 activities, and the advancement of the Mainnet tokenization pilot. Experts believe that if ETH stabilizes above the key range, it is likely to challenge $4,500 and may lead a new round of alt season.

Multiple Favourable Information Drives ETH Pump

Amberdata's Derivatives Director Greg Magadini pointed out that the long-term undervaluation of ETH is changing. Previously, due to internal disputes within the foundation, the EIP-1559 mechanism being limited by L2 execution, and insufficient appeal of staking rewards, the market sentiment for ETH was weak. However, several key turning points have recently emerged:

  1. Liquid staking is recognized as non-security.

  2. ETF applications can allocate staking rewards

  3. The EVM chain developer ecosystem continues to grow.

  4. The application of stablecoins on ETH and EVM chains is becoming widespread.

  5. Clarification of regulations enhances investor confidence

Dual Integration of Fundamentals and Market Positioning

Fogo founder Doug Colkitt believes that ETH's recent breakthrough is a "classic fusion of fundamentals and market positioning."

Fundamentals: Liquid staking, L2 activities, and tokenization pilots drive demand growth

Market positioning: After the SEC released the cryptocurrency ETP guidelines, ETF optimism has heated up.

Capital Situation: Although the funding rate for perpetual contracts has increased, it remains stable, indicating that spot buying is the dominant force.

Colkitt added that the reduction in order books on major trading platforms allows even small inflows of capital to drive up prices.

Expert Target Price and Technical Key Levels

Analysts point out that if ETH stabilizes above the range of 4,200–4,300 USD, momentum traders may rush in, laying the groundwork for a breakout above the resistance level of 4,500 USD.

YouTuber Wendy O added that the Trump administration's executive order allowing 401k funds to be allocated to crypto assets could bring new capital flows to ETH. At the same time, as the only altcoin in the U.S. with a spot ETF, ETH has a first-mover advantage.

The Horn of Alt Season?

Tim Enneking, managing partner at Psalion, believes that the market has entered the "alt season" – a phase in history that lasts from several months to a year, during which coins other than BTC generally pump.

He described this ETH pump as a "nervous rebound"; once there are signs of a price breakthrough, market funds quickly pour in.

Wendy O also pointed out that ETH has played a leading role in altcoin markets multiple times in the past and is still one of the most sought-after crypto assets today.

Conclusion

Ethereum broke through $4,300, marking a synchronized improvement in market sentiment and fundamentals. Liquid staking, ETF optimism, L2 activity, and regulatory clarity have provided solid support for ETH. If it can stabilize above the key range, ETH is not only expected to challenge $4,500 but may also lead a new round of altcoin season.

ETH2.44%
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