Ethereum, the digital asset known as ether, recently crossed a notable threshold. It tapped the $4,000 mark for the first time in eight months. On Friday, the price reached an intraday high of $4,013.67 on Coinbase, then settled back a little.
- Ethereum’s price has surpassed $4,000 for the first time in eight months, marking a significant recovery. The digital asset has seen substantial gains over the past month, climbing over 50 percent.
- New capital is flowing into ether through Ethereum treasury companies and U.S. spot Ethereum ETFs, with ETFs experiencing significant net inflows that have recently outpaced Bitcoin ETFs.
- Ethereum’s network activity is at an all-time high, with a record number of daily transactions and the busiest month recorded in July, indicating strong underlying usage beyond price speculation.
This move feels like a return to form for the second-largest cryptocurrency. It last saw prices above $4,000 on December 16, hitting a peak of $4,107 then. For many, it’s a welcome sight after a period of quiet.
The past month has been kind to ether holders. The asset climbed over 50 percent in that time. It’s up 11.3 percent over the last week and 3.8 percent in the past 24 hours. These are solid gains by any measure.
For much of 2025, ether had a tough time against Bitcoin. It lost half its value compared to Bitcoin. This happened after President Donald Trump’s Liberation Day tariff announcements in April. The ratio bottomed out around 0.018.
But things changed. Since April 21, ether has gained about 90 percent against Bitcoin. That’s a strong recovery, showing renewed interest in the asset. Still, Bitcoin has performed better year-to-date.
Ether is up 19.2 percent for the year, while Bitcoin sits at 25 percent. And we’re still a ways off from ether’s all-time high. That was $4,867, set in November 2021. It remains down roughly 18 percent from that peak.
New Capital Flows and Growing Holdings
So, what’s behind this recent upward push? A big part of it comes from new Ethereum treasury companies. These firms have been buying up billions of dollars worth of ether in recent weeks. They seem to be following a strategy similar to Michael Saylor’s approach with Bitcoin.
Think of it like this: a company decides to hold a significant portion of its cash in a digital asset. For Bitcoin, that’s been Michael Saylor’s playbook. Now, we see companies doing the same with ether, the proof-of-stake cryptocurrency.
BitMine, chaired by Tom Lee, leads the pack. This company holds over 833,000 ETH. That’s about $3.3 billion. Joe Lubin’s SharpLink follows with nearly 522,000 ETH, or $2.1 billion. The Ether Machine holds more than 345,000 ETH, valued at $1.4 billion.
A recent report from Standard Chartered’s Geoffrey Kendrick offered an interesting thought. He said these Ethereum treasury firms are “just getting started.” He suggested they could increase their holdings tenfold over time. This could bring their total to 10 percent of all ether.
Beyond these corporate holdings, money is also flowing into U.S. spot Ethereum exchange traded funds (ETFs). These investment products have seen a significant increase in net inflows. They have even outpaced their Bitcoin ETF counterparts recently.
In the last month alone, nearly $5 billion flowed into these Ethereum ETFs. Since they began trading in July 2024, the total net inflow stands at $9.4 billion. This shows a growing appetite from traditional investors for exposure to ether.
Network Activity and Future Outlook
Another factor contributing to the price move was Ethereum’s network activity. The network hit a new all-time high for daily transactions. On Wednesday, it recorded 1.74 million transactions. This surpassed its previous record from May 2021.
July was also the network’s busiest month yet. It registered over 46 million transactions. This kind of activity points to strong underlying use of the Ethereum network. It’s not just price speculation; people are actively building and using applications.
Vincent Liu, CIO of Kronos Research, shared his thoughts on Thursday. He believes Ethereum’s increased activity has not been fully reflected in the price yet. This suggests there might be more room for growth.
What could be the next big push? Many eyes are on the Securities and Exchange Commission (SEC). Potential approval from the SEC to add staking features to U.S. spot Ethereum ETFs is seen as a key event. Staking involves locking up ether to help secure the network and earn rewards.
If these ETFs can offer staking, it could make them even more attractive to investors. It would allow them to earn a yield on their holdings. This could bring in even more capital. It’s a development many in the market are watching closely.
The path for ether has been a winding one. From struggling against Bitcoin to finding its footing again, it’s been a journey. Now, with significant capital moving in and network activity at record highs, the market watches for what comes next.
