Ethereum's recent surge has positioned the cryptocurrency on the brink of its all-time high, fueled by record-breaking network activity and strong institutional interest. The digital asset has witnessed a 29% price increase over the past week, trading at $4,662 and challenging its 2021 peak of nearly $4,800. This critical price level coincides with unprecedented on-chain metrics, creating a decisive moment for Ethereum's market trajectory.
Network Activity Hits Unprecedented Levels
Recent data from CryptoQuant reveals that daily Ethereum transactions have soared to an all-time high of approximately 1.875 million. This remarkable surge indicates a heightened demand for block space and increased engagement across the network. Analysts suggest that this confluence of robust on-chain metrics and a pivotal price resistance zone ($4,750–$4,800) will be crucial in determining Ethereum's next significant move. A sustained breakthrough above the $4,750 mark, supported by high transaction volumes, could propel ETH into a new phase of price discovery, potentially surpassing its historical peak. Conversely, strong defense of this resistance by sellers might lead to consolidation or a retracement towards the $3,950 support level. While peak network activity often correlates with bullish price action, experts caution that it could also signal short-term market overheating. Even with solid fundamentals, such conditions can prompt a pause or retracement as market participants adjust their positions. This dynamic is particularly noteworthy as Ethereum navigates a historically significant resistance level amidst record network utilization.
Sustained Exchange Outflows Signal Strong Buying Pressure
Further analysis of Ethereum's net flow data across all exchanges reveals a sustained negative trend. CryptoQuant analyst Burak Kesmeci highlighted that the 30-day simple moving average (SMA30) for ETH net flows remains strongly negative, averaging approximately 40,000 ETH in daily outflows as of August 12, 2025. This persistent outflow indicates that more Ethereum is being withdrawn from exchanges than deposited, generally interpreted as a reduction in immediate selling pressure and an increase in long-term holding behavior among investors. Kesmeci attributes this strong outflow to the burgeoning activity surrounding spot ETH Exchange Traded Funds (ETFs), underscoring institutional demand as a primary driver of price support. The analyst predicts that the upward trend for Ethereum is likely to persist as long as the SMA30 remains in negative territory. However, a shift to positive net flows could signal a change in market sentiment and potentially temper the current buying momentum. The coming sessions are expected to clarify whether these strong fundamental and institutional factors are sufficient to breach Ethereum's long-standing price ceiling.
