Ethereum (ETH) has surpassed $4,200 for the first time since December 2024, sparking optimism among traders and interest on social media. This rally is driven by positive sentiment from retail investors and institutional activity in the market.
Trader Optimism and Social Media
Ether's current price has topped $4,200, leading to optimism among traders. Social media sentiment shows a strong bullish trend, with popular hashtags such as #buying, #bought, #bullish, and #higher. Conversely, bearish commentary, including #selling, #sold, #bearish, and #lower, appears at roughly half the rate. Crypto analytics platform, Santiment, noted the growing retail-driven enthusiasm but warned that excessive FOMO could temporarily stall the rally if sentiment becomes overly one-sided.
Institutional Investor Activity
Institutional activity has also played a significant role in Ethereum's recent climb. Since July 10, over 1.035 million ETH, worth approximately $4.17 billion, have been accumulated by unidentified whales or institutions, according to pseudonymous blockchain analyst EmberCN. The purchases occurred via exchanges and institutional platforms, coinciding with a 45% price surge from $2,600 to $4,000. Most holdings are believed to belong to institutions or US-listed firms with ETH reserves, excluding the known SBET address. The average acquisition price during this period was about $3,546.
New Supply Achievements for Ethereum
As of August 9th, Ethereum's circulating supply has reached a record 121 million ETH. This milestone comes nearly three years after the network hit 120 million ETH on August 22, 2022. Currently, Ethereum issues around 2,500 to 3,000 ETH daily. While new ETH is minted daily, staking continues to play a significant role in shaping net supply growth. Every ETH locked in staking contracts is temporarily effectively removed from circulation, offsetting a portion of new issuance and acting as a check on inflation. To date, Ethereum has minted approximately 157.18 million ETH, combining 121 million in circulation and over 36.18 million locked in staking.
Ethereum's rise to $4,200 reflects strong bullish sentiment in the market, fueled by both retail and institutional investors. However, future price stability will depend on the balance between supply and demand in the market.
