After several attempts, Ethereum has finally succeeded in breaking through the $4000 mark, an important psychological price level that has drawn widespread attention from the market. A historical review shows that Ethereum experienced a 65% big dump in 2021, and in 2024 it faced two pullbacks exceeding 40%. This July, it also encountered setbacks. Currently, the entire encryption currency market is focused on the trend of Ethereum.

The market shows a clear confrontation between bullish and bearish forces, with bears holding $677 million in short positions, while bulls hold $1.247 billion in long positions. This situation makes price fluctuations extremely sensitive; a breakthrough above $4000 may trigger short covering, while a drop below $3800 could trigger long stop-losses.

The behavior of large investors is more noticeable. An anonymous whale recently transferred $49 million worth of Ethereum to an exchange, suspected of preparing to cash out. Meanwhile, a certain institutional investor quietly bought $40.5 million worth of Ethereum in the over-the-counter market. Furthermore, a company is applying for $5 billion in financing, possibly aiming to seek entry opportunities.

This complex market environment confuses ordinary investors. They are worried about buying at high prices while fearing to miss potential upward opportunities. Interestingly, although the prices of Ethereum and Bitcoin are active, the on-chain data remains relatively calm, and this contrast has sparked market thoughts on the valuation basis of cryptocurrencies.

The current Ethereum market presents a complex picture: prices have broken through key resistance levels, large investors are showing varied movements, and retail investors are exhibiting a strong sense of wait-and-see. This situation suggests that the cryptocurrency market may be brewing new changes, and investors need to remain vigilant and closely monitor market trends.