Recent market trends are creating the perfect setup for an Ethereum price breakout. Notably, ETH has been steadily gaining momentum, with its price now edging closer to a new all-time high. In the past few days, the leading altcoin has experienced a surge in network activity, rising demand, and shrinking exchange supply—all key drivers for a potentially explosive move.
Network Growth Pushes Ethereum Price Toward New ATH
Ethereum is quickly approaching its previous all-time high as network activity has surged to unprecedented levels. According to on-chain analytics firm CryptoQuant, daily Ethereum transaction counts have climbed to a record high of approximately 1.875 million, underscoring a strong surge in user engagement and network demand.
This spike in activity has coincided with a sharp rally in the ETH price from around $3,150 in late July to $4,563 in August, positioning the cryptocurrency within striking distance of its historical peak. Currently, Ethereum is trading at $4,737, meaning it is only 2.67% away from surpassing its ATH of $4,867, recorded during the bull run in November 2021.
Over the past month, Ethereum has maintained a strong upward trajectory, soaring by roughly 60% according to CoinMarketCap. The momentum has only intensified in the last week, with the cryptocurrency rallying over 27% while outperforming Bitcoin by 124% since the market lows in April. If this bullish run persists, ETH could be on the verge of setting a fresh ATH, marking a historic moment for the crypto market.
Adding to the positive sentiment is Ethereum’s Netflow SMA30, which CryptoQuant reveals currently sits at -40,000 ETH. Based on the chart, sustained outflows signal that investors are moving their holdings into cold storage rather than keeping them on exchanges for quick sells, effectively reducing sell-side liquidity and increasing buying pressure.
This trend was particularly pronounced between late July and early August. On August 12, Ethereum saw a substantial net inflow of 186,000 ETH, and on the same day, its price touched $4,589. This supports CryptoQuant’s narrative that ETH is rapidly edging toward a new record high, driven not only by rising network activity but also by accelerating accumulation.
Short Squeeze Risk And ETF Inflows Add To Momentum
While the ETH price is surging, market analyst Coin Bureau warns that a new all-time high could trigger a cascade of short liquidations, potentially injecting even more volatility into the market. The analyst predicts that nearly $2 billion worth of short positions could be wiped out, forcing traders to buy back the altcoin at higher prices and possibly accelerating the rally.
Interestingly, Ethereum’s rapid price ascent is also being amplified by surging institutional demand. Crypto analyst Ted Pillows reported in an X social media post that Spot Ethereum ETFs attracted a massive $729.1 million in inflows in just one day—a signal that institutional FOMO may be returning to the market. Alongside this ETF boom, demand from Ethereum Treasury firms has also climbed sharply, reinforcing ETH’s bullish momentum.
Featured image from iStock, chart from Tradingview.com
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