To Buy or Not? Ethereum (ETH) Taps $4k for The First Time Since December 2024

Ethereum (ETH) has surged past the $4,000 mark for the first time in eight months, signaling a significant resurgence for ETH bulls and bolstering the ongoing altseason. This milestone coincides with a noticeable decline in Bitcoin’s (BTC) dominance in the cryptocurrency market, suggesting a potential shift in investor focus.

Moreover, data from CoinGecko revealed that ETH/USD reached $4,012 on Bitstamp. The pair’s 1.7% daily gain not only marked a high point for 2025 but also brought it within $900 of its all-time high, demonstrating substantial upward momentum.

Ethereum Dominance En Route?

Rekt Capital, a prominent trader and analyst, highlighted Ether’s growing share of the total cryptocurrency market capitalization on X. His analysis suggests that Ethereum’s dominance is already well on its way through its macro uptrend, drawing parallels to the previous ETH bull run in 2021.

Furthermore, the market dynamics reveal a distinct investor preference for Ether over Bitcoin. Trader Cas Abbe noted recent large-scale purchases of Ether, further highlighting this trend. Lookonchain, an onchain analytics firm, tracked whale transactions indicative of attempts to capitalize on Ether’s relative strength.

Specifically, Lookonchain reported that as ETH broke through $4,000, one whale (0xaf6c) purchased 1,390 WETH ($5.56 million) at $4,000. This whale then deposited the WETH into Aave, borrowed 52.83 WBTC ($6.17 million), and swapped it for 1,539 WETH ($6.17 million). This complex maneuver highlights the confidence of large investors in Ether’s continued appreciation.

Additionally, reports indicate a whale bought 10.4K ETH worth $40.5 million via OTC, and Fundamental Global Inc. filed a $5 billion shelf offering to buy more ETH, reinforcing the bullish sentiment.

A Buy Signal or Market Tease

Exchange order book data pointed to a “massive wall of long liquidations” beneath $3,960, which, according to X account TheKingfisher, presented an opportunity for further ETH price increases. This sentiment was echoed across the market, with participants noting that “smart money hunts” such opportunities.

Furthermore, these developments are occurring within the context of a broader struggle for market dominance by altcoins, leading to a rapid decline in Bitcoin’s market cap dominance. Bitcoin’s share fell below 60.7% on the day, testing a critical support level.

Rekt Capital suggested that while Bitcoin dominance could still rebound to traditional peak levels around 70%, its eventual breakdown is “inevitable.” He forecasts that once the long-term technical uptrend is lost, BTC dominance will transition into a long-term technical downtrend, paving the way for altcoins like Ether to gain further ground.

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