After 48% July Gain, Can Ethereum Break Key $4K Resistance in August?

Ethereum (ETH) significantly outshined Bitcoin (BTC), precious metals, bonds, top commodities, and the equities market in July. Although Bitcoin price reached a new all-time high (ATH) in July, the second-largest crypto posted a massive 48% gain for the month, strongly outperforming Bitcoin’s 7.9% rally and pushing right up against the crucial $4,000 resistance level.

According to an analysis by Ecoinometrics, the “risk-on” sentiment that lifted all markets in July clearly favored Ether the most. A key driver for this outperformance was the massive success of the new U.S. spot Ethereum ETFs, which pulled in approximately $5.4 billion in net inflows throughout the month, fueling intense buying pressure.

On-Chain Data Shows ETH Demand Still High

Even as the price has seen a minor pullback, on-chain metrics show that demand for Ethereum has remained incredibly strong. According to market data analysis from Santiment, the Ethereum network saw a huge spike in its daily active addresses, reaching 841,100, the highest level seen in the past 12 months.

At the same time, large institutional players are actively accumulating. On-chain tracker EmberCN noted that SharpLink Gaming sent $108 million in USDC to Galaxy Digital with the specific purpose of buying more Ether. In the last day alone, SharpLink added close to 15,000 ETH, taking its total stash to 464,000 ETH, worth about $1.62 billion.

Related: Ethereum ETFs Start August with First Outflow, Ending 20-Day Streak

This kind of institutional confidence is built on several factors: Ethereum’s position as the largest and stable smart contract platform, its flawless record of zero network downtime, and the recent celebration of its ten-year anniversary.

Ethereum Outlook for August

After being rejected from the $4,000 resistance at the end of July, Ethereum has had a soft start to August. However, historical data suggests the month could still end in positive territory for the asset.

According to market data analysis from coinglass, Ether price has recorded an average monthly return of 4.89% in August since its inception. With the 2025 bull market showing more characteristics akin to the 2017 crypto summer, which saw Ether rally 92% in August, a bullish sentiment is palpable.

Related: Bitcoin Dominance Hits 3-Year High But Faces Historical August-September Slump

From a technical analysis standpoint, ETH price is well primed to reach a new ATH in August if the $4k resistance is breached. Moreover, the 4-hour Relative Strength Index (RSI) is at its oversold level amid a macro bullish outlook.