Ethereum (ETH) has reached a local high, surpassing $4,200 for the first time since December 2024. The rally has been fueled by sustained institutional interest, active retail buying, and a significant expansion in circulating supply.

According to analytics platform Santiment, market sentiment on social media remains strongly positive. Hashtags such as #buying, #bullish, and #higher appear nearly twice as often as #selling, #bearish, and #lower. Analysts caution, however, that excessive market euphoria could lead to a short-term correction.

Since mid-July, large holders and institutional funds have acquired over 1.035 million ETH, worth approximately $4.17 billion, at an average purchase price of $3,546. These acquisitions have been a key driver behind Ethereum’s rise from $2,600 to $4,000.

As of August 9, 2025, Ethereum’s circulating supply reached a record 121 million ETH. Total issuance stood at roughly 157.18 million ETH, including over 36.18 million ETH locked in staking. The balance between issuance and staking helps maintain stability in the network’s monetary base.

Analysts note that the sustainability of the current rally will depend on continued demand. A slowdown in buying could put downward pressure on the price, but if user activity remains strong, Ethereum may have further room to appreciate.

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