In the crypto assets market in July, Ethereum (ETH) emerged as one of the best-performing assets with an astonishing 48% rise, far exceeding Bitcoin's 7.9% increase and other traditional assets. The price of ETH once approached the important resistance level of 4000 USD, sparking enthusiastic discussions in the market about its performance in August.

Despite the optimistic outlook, investors still need to be cautious about the volatility risk in the short term. There are several key factors behind Ethereum's strong performance:

Firstly, global market risk appetite is high, and Ethereum has become the biggest beneficiary. The newly launched Ethereum spot ETF attracted about $5.4 billion in net inflows in July, and this huge amount of funds directly increased buy pressure, causing prices to rise rapidly. In contrast, the Bitcoin spot ETF saw a significant outflow of funds at the beginning of August, highlighting investors' preference for Ethereum.

Secondly, the on-chain data of the Ethereum network is performing exceptionally well. The number of daily active addresses has surged to 841,100, reaching a new high in 12 months, reflecting the increasing activity and user participation in the ecosystem. This data suggests the continuous growth of the Ethereum network and the expansion of its application scenarios.

In addition, institutional investors' confidence in Ethereum is constantly increasing. For example, SharpLink Gaming recently transferred $108 million in USDC to Galaxy Digital to increase its holdings of ETH. The company increased its holdings by nearly 15,000 ETH in a single day, bringing its total holdings to 464,000, valued at approximately $1.62 billion. This large-scale institutional accumulation further boosts the market's confidence in Ethereum.

With the arrival of August, the market is closely watching whether Ethereum can break through the key resistance level of $4000. Although multiple factors support Ethereum's upward momentum, investors still need to be cautious of potential fluctuations in the short term. Market sentiment, capital flow, and historical patterns will continue to impact Ethereum's price movement.

For individuals intending to participate in Ethereum investment, it is advisable to closely monitor market dynamics, rationally assess risks, and make informed investment decisions based on their own risk tolerance. In the highly volatile Crypto Assets market, maintaining calm and a long-term investment perspective is especially important.