Ethereum Surpasses $4,000, Fueled by Corporate Demand

For the first time since December, Ethereum (ETH) has breached the $4,000 mark. On Friday, August 8, 2025, the cryptocurrency reached a high of just over $4,000. This milestone potentially concludes an eight-month struggle with a significant psychological barrier and underscores the growing strength of the world's second-largest cryptocurrency. While this level could also serve as a potential reversal point, recent fundamentals suggest a strong potential for a continued rally toward all-time highs.

ETH’s price surged by nearly 4% over the past day, with a double-digit increase for the week and a roughly 50% gain over the last month. Despite this impressive performance, Ethereum remains nearly 20% below its 2021 historical peak, when the coin was priced at almost $5,000.

Record Network Activity Provides Foundational Support

The break above $4,000 was preceded by a surge in network activity. On August 5, the Ethereum network processed a record 1.74 million daily transactions, surpassing the previous high set in May 2021. July 2025 also marked the network's most active month ever, with 46.67 million transactions.

This increase in activity was facilitated by a rise in the gas limit to 45 million, a 25% increase from early February 2025. Analysts highlight that this growing network activity has not yet been fully priced into ETH’s value.

The Rise of Corporate Accumulation

A key driver of the current rally is the phenomenon of "Ethereum Treasury Companies," publicly traded firms building strategic ETH reserves. According to data from Standard Chartered, these companies have purchased 1.6% of the total circulating ETH supply since June, mirroring the accumulation rate of U.S. spot ETH funds.

Companies with the largest Ethereum Reserves. Source: Standard Chartered, XTB

Geoffrey Kendrick, head of digital asset research at Standard Chartered, argues that companies holding ETH treasuries offer better value than ETFs due to additional benefits like staking rewards, increasing ETH per share from continuous accumulation, and "regulatory arbitrage" for some investors. Kendrick noted he currently sees no reason for the net asset value (NAV) ratio to fall below 1, which has occurred with some ETFs.

Leaders in Corporate Accumulation

• BitMine Immersion Technologies has emerged as the largest corporate holder of ETH, with 833,137 tokens valued at $2.9 billion. The company, led by Fundstrat's Tom Lee, built this position in just 35 days after launching its strategy on June 30.
• SharpLink Gaming, led by Ethereum co-founder Joe Lubin, ranks second with 521,939 ETH, valued at nearly $1.9 billion. The company has announced plans to raise an additional $200 million for further ETH accumulation.
• The Ether Machine rounds out the top three with over 345,000 ETH worth $1.4 billion. These three firms are the dominant players in the corporate Ethereum treasury market.

ETFs vs. Corporate Treasuries

Despite initial success, spot ETH ETFs have experienced volatile flows in August. A record outflow of $465 million was recorded on August 4, primarily from BlackRock ETHA ($375 million) and Fidelity FETH ($55 million). However, inflows of $73.2 million followed the next day.

Standard Chartered suggests that ETH treasury companies are gaining an edge over ETFs due to their ability to generate additional returns and greater investment flexibility. The NAV ratios of these firms have normalized above 1, which analysts believe makes them more attractive than passive ETFs.

Outlook for Continued Growth

Forecasts for Ethereum remain optimistic. Arthur Hayes projects a price increase to $10,000 in 2025, citing the impact of new stablecoin legislation in the U.S. Standard Chartered suggests that ETH treasury companies could increase their holdings tenfold, potentially controlling 10% of the total ETH supply. This would also lead to reduced ETH availability for other investors, including ETFs.

Additional catalysts for growth could include:

• Potential SEC approval for staking in ETFs.

• Growing adoption of DeFi and restaking protocols.

• Increased use of stablecoins on the Ethereum network.

Technical Outlook

From a technical analysis perspective, the break above $4,000 opens the door to higher levels. Analysts point to potential targets around $4,500-$5,000 if the current momentum is sustained, although a pullback occurred after the initial test of the round level. Key support remains at $3,800, while the next resistance lies in the $4,100-$4,200 range.