Ethereum Is About to Reach Its All-Time High? What to Expect from Ethereum in August?

Ethereum is once again fluctuating around the $4,000 mark, up more than 2.5% in the past 24 hours and trading around $3,877. This has sparked hopes for a new bullish trend and possibly a new all-time high. The context may seem familiar, but this time the scenario is quite different. As July is about to end, ETH finds itself trapped in a web of converging catalysts: large leveraged bets, abundant ETF capital inflows, decreasing exchange supply, and increasing strength against Bitcoin. All of these set the stage for a potentially explosive August. At least, that's the hope. Very Large Underlying Leverage: Can ETF Capital Flows Stabilize This Area? According to the latest liquidation map of ETH/USDT from Bitget, more than $5.78 billion in accumulated long leverage is currently situated between $3,358 and $3,875. With ETH trading around the upper end of this range, it is hovering near a danger zone. A push higher in price could turn this area into a launchpad; or if the price drops, it could trigger a series of liquidations.

What makes this rally different from previous leveraged increases is the type of currency supporting it. In July 2025, the ETH ETF (Exchange Traded Fund) recorded a net capital flow of $5.12 billion, the highest monthly figure in the past year, in dollar terms. This did not only come from individual investors. It reflects the participation of institutions, clearly evident in both spot allocation and obviously in derivative products.

That belief is what gives the buyers some breathing room in this high-risk leverage trap. There is no good reason to believe that the ETF frenzy in July will not carry over into August. If ETH can regain $3,900 thanks to the bullish momentum, it could trigger a forced short squeeze, especially with over $1 billion in short positions waiting to be liquidated. That's right, even the short positions are significant. Foreign Exchange Reserves Added Another Layer of Bullishness Adding to the optimistic outlook is the low exchange reserve data. Although ETH has risen over 57% from last month's low, the holdings on exchanges have not increased. In fact, monthly exchange reserves are at their second-lowest level in over a year.

The issue is not just the low supply. More notably, although large wallets are selling off, the reserves are not spiking.

This shows the absorption of supply, where the demand from retail and institutional investors is absorbing the selling pressure. As ETF money flows in and foreign reserves decrease during rising prices, the takeaway is very simple: strong confidence and sellers are being outpaced. ETH/BTC Rate Soars: Is the Altcoin Season Approaching? Broadly speaking, the ETH/BTC ratio is telling its own bullish story. The pair has risen to 0.032, up nearly 40% from the June lows, and is now on the verge of completing a rare golden cross on the 20-day, 50-day, 100-day, and 200-day EMA (moving averages).

Only one more move left: the 50-day EMA (orange) crossing above the 200-day EMA (blue). Once this happens, it will confirm a comprehensive bullish structure; similar to the structure often seen before prolonged bullish runs of altcoins. In the context: strong inflows of ETFs, decreasing foreign reserves, and long-term financial leverage — this intersection is not just symbolic. It could be the technical confirmation that the buyers need to maintain deeper growth momentum into August. Ethereum Price Action: Important Resistance Level Defines Battle Zone With the outstanding performance of Ethereum compared to Bitcoin increasingly gaining attention, that strength could soon spread to ETH/USD price fluctuations. The ETH/BTC ratio has historically acted as a leading indicator for USD breakouts, and with the golden cross nearly complete, ETH's bullish momentum seems ready to shift. ETH is currently closely following the Fibonacci extension level of 0.236 at $3,919. A complete breakout and closing above this level could ignite bullish momentum, with a target at: 4.173 dollars (Fib 0.382)4.378 dollars (Fib 0.5)4.583 dollars (Fib 0.618)4.874 dollars (Fib 0.786) Breaking past the $4,874 threshold will drive the price of Ethereum to a new all-time high (ATH). And with ETH having increased by 55% just in July, the possibility of reaching "ATH" is becoming increasingly feasible.

However, if it fails to hold above $3,919, the bullish momentum will be stalled, making ETH susceptible to retesting the support level around $3,510; the invalidation level of the trendline. This is the level that buyers need to defend to avoid re-entering the broader accumulation zone. And remember, a sharp price drop could trigger the liquidation levels discussed previously.