World Liberty Buys Big: Could $4,000 Become Ethereum’s Next Safe Zone?

Ethereum is once again capturing the spotlight as institutional demand, led by major players like World Liberty ETH Holdings, sends ripples across the crypto market. With a recent $1 million ETH purchase, many are now asking: Is the $4,000 threshold within reach—or already breached in spirit?

World Liberty Makes Bold Ethereum Bet

In a bold move signaling growing confidence in Ethereum’s long-term trajectory, World Liberty ETH Holdings—reportedly linked to figures close to former U.S. President Donald Trump—recently purchased 256.75 ETH using $1 million USDC. This latest acquisition, executed at $3,895 per ETH, increases the firm’s total Ethereum holdings to 77,226 ETH, valued at approximately $296 million.

Source: X

World Liberty’s strategy appears to be more than just opportunistic buying. With an average purchase price of $3,294, the entity is sitting on an estimated unrealized gain of over $41.7 million. Such confidence amid volatility is being viewed by analysts as a potential catalyst for a sustained price rally.

Ethereum Pushes Beyond $3,800, Eyes $4,000 Mark

Ethereum has surged more than 50% over the past month, with its current price hovering around $3,872—a modest 0.5% dip over the last 24 hours. Despite the daily decline, 24-hour trading volume rose by 4.53% to reach $36.13 billion, signaling heightened market activity.

Source: CoinMarketCap

After briefly dipping below $3,750 due to profit-taking, Ethereum managed to bounce back above the $3,800 level. Analysts note that if the price holds firmly above $3,700, there is a high probability that Ethereum could push beyond $4,000 in the short term.

Institutional Demand Reshaping Ethereum Market Dynamics

World Liberty’s aggressive accumulation is not an isolated case. SharpLink Gaming, a major player in the digital gaming and entertainment sector, recently allocated a staggering $295 million to Ethereum.

Meanwhile, U.S.-based Ethereum ETFs have seen 17 consecutive days of inflows, with the most recent tally reaching $65.2 million in a single day. These consistent inflows indicate that Ethereum is no longer just a cryptocurrency—it’s increasingly being treated as a high-value strategic asset by institutional investors.

Such institutional activity is reinforcing Ethereum’s position in the broader financial ecosystem. The asset’s integration into ETFs, staking protocols, and cold wallet strategies suggests a growing belief in Ethereum as a long-term store of value and a critical infrastructure layer for decentralized applications.

Supply on Exchanges Hits Multi-Year Low

Adding fuel to the bullish narrative, Ethereum’s exchange reserves have fallen to a multi-year low. According to on-chain analyst Merlijn Trader, only 19.5 million ETH remain on centralized trading platforms. This drop implies that more Ethereum is being locked in smart contracts, cold wallets, or staking protocols—effectively reducing the circulating supply and increasing upward pressure on the price.

Source: Twitter

This supply squeeze has also reduced sell-side liquidity. With fewer coins available for trading and an increasing number of investors taking Ethereum off exchanges, any spike in demand could send prices sharply higher.

Short-Term Volatility Remains but Bullish Outlook Holds

Despite the clear bullish trend, Ethereum has not been immune to short-term volatility. A recent price correction brought ETH below $3,750 temporarily. However, strong buying interest quickly reversed the downturn, bringing the price back to its current level near $3,872.

Technical analysts are keeping a close eye on key levels. A breakout above the psychological $4,000 resistance would likely initiate a short squeeze, especially given the record-high open interest of $59.94 billion in Ethereum derivatives markets and 63% of positions skewed long.

Should the breakout succeed, Ethereum could target the $4,200 to $4,500 range. However, if the asset is rejected at the $4,000 level, a potential retracement toward $3,571—the 23.6% Fibonacci retracement level—could follow, giving bulls a chance to regroup.

Is $4,000 the New Floor for Ethereum?

Market analysts believe the $4,000 milestone is not just a resistance level anymore—it may soon become Ethereum’s new support base. With continued institutional buying, decreasing exchange supply, and increasing use cases for ETH, the fundamentals point to sustained growth.

Moreover, Ethereum’s ecosystem is expanding rapidly, driven by Layer-2 solutions, staking incentives, and decentralized finance (DeFi) innovations. The upcoming network upgrades, including scalability improvements and reduced gas fees, are further bolstering investor optimism.

Notably, Ethereum’s ability to retain its price level above $3,600 after such a significant monthly gain illustrates underlying market strength. This behavior contrasts sharply with earlier boom-bust cycles, suggesting that Ethereum may be entering a more mature phase of growth.

What’s Next for Ethereum?

The momentum is undeniable. With Ethereum ETFs seeing constant inflows, exchange reserves dropping, and whales like World Liberty ETH Holdings making strategic moves, the stage appears set for a significant breakout.

If Ethereum crosses and sustains above $4,000, analysts expect increased institutional participation, media attention, and FOMO-driven retail interest to follow. This influx could lead to accelerated gains toward $4,200 or even higher in Q3 2025.

Still, caution remains. The crypto market is known for its rapid reversals, and profit-taking could easily trigger temporary corrections. Yet, with such solid on-chain metrics and capital backing Ethereum’s trajectory, most signs point to a bullish continuation.

Final Thoughts

The story of Ethereum in 2025 is not just one of price—it’s about institutional acceptance, infrastructure growth, and technological promise. World Liberty ETH Holdings may have placed a strategic bet, but their confidence is shared across the financial spectrum.

As Ethereum inches closer to the $4,000 level, all eyes are on whether this psychological threshold will finally flip from resistance into solid ground. If it does, a new chapter in Ethereum’s evolution could be underway—one where the asset transcends speculative interest and becomes a cornerstone of the global digital economy.

Writer @Ellena

Ellena is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

 Check out other news and articles on Google News

Disclaimer:

The articles published on hokanews are intended to provide up-to-date information on various topics, including cryptocurrency and technology news. The content on our site is not intended as an invitation to buy, sell, or invest in any assets. We encourage readers to conduct their own research and evaluation before making any investment or financial decisions.

hokanews is not responsible for any losses or damages that may arise from the use of information provided on this site. Investment decisions should be based on thorough research and advice from qualified financial advisors. Information on HokaNews may change without notice, and we do not guarantee the accuracy or completeness of the content published.