Ethereum (ETH) surged past $4,000 on August 8, 2025, marking its first return to this psychological level since December 2024. The move has reignited bullish sentiment in the altcoin market and positioned ETH as a leading contender for the next major crypto rally.

Institutional Demand and ETF Inflows Fuel the Rally

One of the biggest drivers behind Ethereum’s rise is a surge in institutional interest. Newly approved Ethereum ETFs have seen significant inflows in recent weeks, drawing billions of dollars from both retail and professional investors.

Data shows large treasury holdings by public companies and blockchain-native firms, further signaling long-term confidence in Ethereum’s ecosystem. Analysts note that the ETF momentum mirrors the pattern Bitcoin saw earlier this year, when similar products helped push BTC to multi-year highs.

Derivatives Market Points to $4,400 Target

Options market data reveals that Ethereum’s net gamma exposure between $4,000 and $4,400 is negative. In simple terms, this means market makers may need to buy more ETH to hedge their positions if the price keeps rising, a dynamic that can accelerate upward momentum.

Some traders believe this could quickly push ETH toward $4,400, provided the breakout above $4,000 holds over the coming days.

Altseason Hopes Rise

Ethereum’s climb comes as Bitcoin’s price remains relatively flat, causing a dip in BTC dominance and boosting altcoin performance. Historically, such shifts have preceded “altseasons,” where capital flows heavily into non-Bitcoin assets.

ETH’s renewed strength also coincides with upgrades and scaling improvements on its network, including Layer-2 adoption growth and upcoming Ethereum Improvement Proposals (EIPs) aimed at reducing transaction costs and improving efficiency.

Market Watching for Breakout Confirmation

Despite the bullish momentum, analysts caution that ETH must sustain its position above $4,000 to confirm the breakout. If the price falls back below this threshold, short-term traders may take profits, potentially triggering a retracement.

Still, sentiment remains overwhelmingly positive. The combination of ETF inflows, corporate accumulation, and favorable derivatives positioning has created a potent setup for further gains.

The Bottom Line

Ethereum’s surge past $4,000 signals a renewed wave of confidence from investors and institutions alike. If the bullish setup plays out, the next key target sits at $4,400 — and beyond that, a potential push toward its all-time high.

A Bitcoin wallet long dormant for 12.4 years was reactivated on August 1, 2025, moving 306 BTC, now valued at approximately $35 million, according to Whale Alert. The transfer stands out as one of the more notable reawakenings from pre‑2013 holdings, capturing attention across the crypto community.

From Dormancy to Activity

Purchased around 2013 at a modest price, the 306 BTC accrued substantial gains—now worth nearly 1,500 times the original cost. While the identity of the owner remains unknown, the move is reminiscent of other “Bitcoin OG” awakenings, which occasionally trigger sharp market reactions. Analysts say such transfers are closely watched for signs of potential sell-offs.

Market Ripples and Structural Patterns

Although the reactivation has generated noise, there’s no evidence yet of funds being sent to public exchanges. Similar moves, including a 343 BTC shift to Kraken from another 12-year dormant address, often precede stealth declines or profit-taking among early holders.

While large, long-dormant transfers typically sow sentiment-related volatility, these holders frequently execute over-the-counter (OTC) trades to avoid impacting market prices.

Why This Matters

Early Bitcoin adopters hold unique psychological and on-chain weight. Movements from long-unused addresses, sometimes dubbed “sleeping whales” can signal shifts in conviction or asset reallocation strategies. As Bitcoin trades near record highs, even small percentage swings in supply on the move can influence sentiment, especially among traders closely watching old‑coin behavior.

What to Watch

• Exchange flows: Any portion of this BTC entering exchanges could hint at forthcoming selling pressure.
• Market response: Technical levels around $113K to $115K may be tested as liquidity adjusts.
• Further reactivations: A trend of long-dormant wallets waking up may signal broader profit-taking or older holders rebalancing.

Conclusion

The reactivation of this 306 BTC address marks another chapter in the evolving story of Bitcoin’s early adopters. While the intent behind the transfer isn’t yet clear, it adds to a recent pattern of aging coins stirring to life—underlining how legacy holders still shape sentiment even as the market matures.

Also Read: Bitcoin Eyes Rebound as Fear & Greed Index Holds in Greed Zone

Bitcoin supremacy has dropped over 5.87% over the past month from 66% to 61.37% as of July 31, 2025. Meanwhile, altcoins like Ethereum, IKA, and Pump.fun are witnessing significant price rallies, hinting of rotating capital into altcoins.

What Happened?

According to recent Trading View data, BTC collapsed from nearly 66% down to 61.37% in just a month. That marks a 5.87% decline in dominance and 5.21% over the past three months.
At the same time, Bitcoin’s price hiked from about $111K to $122K, hitting new all-time highs, yet its dominance fell as altcoins outperformed.

How Are Altcoins Reacting?

Ethereum marked its 10‑year anniversary on July 30, surged over 170%, and now sits roughly 20% below its all‑time high of $4,878.
IKA surged ~25% in 24 hours, breaking all-time highs (≈$0.0363). Pump.fun has also gained ~27.6% in a single day, driven by strong momentum after its July ICO launch.

Why It Matters

• Bitcoin dominance often signals a clear declining shift toward altcoin season when capital rotates into smaller-cap, higher-beta tokens.
  
• Even though Bitcoin is going up, investors are looking at other cryptocurrencies that might grow even more especially while Bitcoin is already close to its highest price ever.
  

What’s Next?

If Bitcoin dominance drops below the 60% threshold, it could signal the start of a major rotation into altcoins, potentially triggering broad-based outperformance across the sector. Traders are closely watching the price action of Ethereum, IKA, and Pump.fun, as well as gains among medium- and small-cap tokens, which often lead during altcoin cycles. Analysts also point to the Altcoin Season Index climbing above 50% as a key indicator that altcoins may soon take center stage in market momentum. As dominance shifts, the next leg of the bull market could be driven by assets beyond Bitcoin.

Also Read: Bitcoin Eyes Rebound as Fear & Greed Index Holds in Greed Zone