Ethereum Price Forecast: ETH surges above $4,000, fueled by demand from treasury companies

Ethereum (ETH) has reclaimed the $4,000 milestone on Friday, following sustained demand from public companies leveraging it as the primary asset of their treasuries.

Demand from Ethereum treasury companies pushes ETH past $4,000

Ethereum surpassed the $4,000 mark for the first time in eight months on Friday, extending its strong performance over the past months into August, according to data from crypto exchange Binance.

Despite beginning the year on a weak note following a 65% decline from $4,107 to $1,385 between December 16 and April 9, ETH is beginning to flip the script. The second-largest cryptocurrency has gained more than 180% since hitting $1,385. Over the past month, it has rallied more than 60%.

The impressive performance comes on the back of a strong buying pressure from corporate entities, which has pivoted toward an ETH treasury. Since June, these companies — led by Fundstrat's Thomas Lee-backed BitMine Immersion and Joe Lubin's SharpLink Gaming — have accumulated nearly 2 million ETH through proceeds from debt and equity offerings worth billions of dollars.

According to Geoffrey Kendrick, head of digital asset research at Standard Chartered, Ethereum treasury companies could grow to own 10% of ETH's total supply. He also expressed in a note to investors earlier in the week that these companies are "better buys" than US spot ETH exchange-traded funds (ETFs), which have also been on a bullish run.

The products have maintained twelve weeks of consecutive inflows since May, attracting over $5 billion in July, according to SoSoValue data.

The top altcoin has also received a regulatory boost with the Securities & Exchange Commission (SEC) issuing a statement on Tuesday that the liquid staking of crypto assets does not violate securities laws. This could pave the way for approval of staking within ETH ETFs, with BlackRock, Fidelity and Bitwise waiting on the agency's decision.

Ethereum Price Forecast: ETH to tackle $4,100 resistance, eyes $4,500

Ethereum experienced $136.74 million in futures liquidations over the past 24 hours, with $22.54 million and $114.20 million in long and short liquidations, respectively, per Coinglass data.

After finding support near $3,470 last week, ETH has risen about 15%, moving above $4,000 for the first time since December 2024. As a result, the top altcoin is tackling the resistance of historical selling pressure near $4,100 and a descending trendline extending from its all-time high in November 2021.

ETH/USDT daily chart

A successful crossover above $4,100 could validate another bullish pennant and stretch ETH's rally toward the $4,500 resistance before tackling its all-time high at $4,868.

On the downside, ETH has to hold the support at $3,470 to maintain a bullish structure. A weekly candlestick close below this level could send ETH toward the $3,000 psychological level if the $3,220 support fails.

The Relative Strength Index (RSI) is on the verge of entering the overbought region while the Stochastic Oscillator (Stoch) has remained at overbought levels since June. While such conditions signify heightened bullish momentum, it also increases the chances of a short-term pullback.