TLDR:
- Ethereum price jumps 60% from late July, reaching $3,850 while targeting the $4K breakout level.
- Bitcoin’s realized capitalization climbs to $1.018T, showing no capital drain toward Ethereum.
- On-chain data suggests Ethereum’s growth is driven by new investor liquidity entering the market.
- Traders see $4K as a key resistance; breaking it may trigger a strong Ethereum price discovery phase.
Ethereum’s recent climb has investors talking. From late July, the price jumped from $2,398 to $3,850, a 60% run.
Many expected this surge to drain Bitcoin, but that assumption does not hold. On-chain data paints a different picture. New money is entering Ethereum without cutting into Bitcoin’s base.
Bitcoin’s Realized Capital Tells the Story
CryptoQuant data shows Bitcoin’s realized capitalization reached $1.018 trillion on July 25. This measure tracks actual invested capital based on the last on-chain movement of each coin. If Bitcoin were losing value to Ethereum, this number would drop. Instead, it is still climbing. This indicates Bitcoin holders are not cashing out to chase Ethereum.
ETH’s Rally Is Not Paid with Bitcoin
“It is clear that there is no major capital rotation from BTC to ETH; what we are seeing is new capital flowing into Ethereum.” – By @oro_crypto
Read more ⤵️https://t.co/OnpDBwcwd5 pic.twitter.com/qI5qK2jfLU
— CryptoQuant.com (@cryptoquant_com) July 29, 2025
Bitcoin’s price has stalled, but that often happens during heavy accumulation. Past cycles show this pause usually precedes major moves. It looks less like weakness and more like steady positioning for what comes next.
Ethereum’s rise is not random. Strong network growth and investor demand are pulling in new funds. Oro Crypto of CryptoQuant noted that capital rotation is not driving the rally. Instead, Ethereum is attracting additional liquidity from outside Bitcoin.
This is critical for the market. It means the two largest crypto assets are not cannibalizing each other. Bitcoin remains firm while Ethereum benefits from new inflows.
All Eyes on Ethereum Price Breaking $4K
Traders are watching $4,000. Merlijn The Trader pointed out this level has rejected Ethereum seven times since 2021. TedPillows noted the same, stating that reclaiming it could trigger an aggressive breakout.
$ETH: $4,000 IS THE FINAL BOSS
The ceiling since 2021
Rejected 7 times
Now under pressureThis isn’t just another resistance.
It’s the gate to price discovery.And Ethereum is knocking louder than ever. pic.twitter.com/lHbtzN4Ttu
— Merlijn The Trader (@MerlijnTrader) July 29, 2025
CoinGecko shows Ethereum trading at $3,817 with heavy volume. If $4,000 gives way, Ethereum enters price discovery. It would mark a new phase that does not come at Bitcoin’s expense.
Ethereum’s surge shows crypto is not a zero-sum game. Bitcoin keeps growing. Ethereum attracts fresh demand. Both move forward without cutting each other down.
For investors, this means one thing: the rally is not just a reshuffle. It is new money changing the market’s shape.
