Ethereum (ETH) has surged past the $4,200 mark for the first time since December 2024.

The latest milestone comes with a retail optimism, which is overshadowing bearish views.

Bullish Hashtags Dominate Social Media

Ether is currently trading above $4,200, and this surge has sparked optimism among traders. In fact, social media sentiment shows a strong bullish tilt, with hashtags like #buying, #bought, #bullish, and #higher trending alongside ETH.

On the other hand, bearish commentary, including #selling, #sold, #bearish, and #lower, is appearing at roughly half the rate.

Crypto analytics platform, Santiment highlighted the growing retail-driven enthusiasm but warned that excessive FOMO could temporarily stall the rallys momentum if sentiment becomes overly one-sided.

Meanwhile, institutional activity has also played a major role in Ethereums latest climb. Since July 10, over 1.035 million ETH worth approximately $4.17 billion have been accumulated by unidentified whales or institutions, according to pseudonymous blockchain analyst EmberCN.

The purchases were made via exchanges and institutional platforms, and coincided with a 45% price surge from $2,600 to $4,000. Most holdings are believed to belong to institutions or US-listed firms with ETH reserves, excluding the known SBET address. The average acquisition price during this period was about $3,546, signaling large-scale strategic positioning.

Beyond market mood and accumulation, the altcoin has broken a historical supply record.

Another Milestone For Ethereum

As of August 9th, Ethereums circulating supply has reached a record 121 million ETH, as per network data shared by CryptoQuant. The milestone comes nearly three years after the network hit 120 million ETH on August 22, 2022, following a slow but consistent increase.

Ethereum currently issues around 2,500 to 3,000 ETH daily. While new ETH is minted daily, staking continues to play a significant role in shaping net supply growth.

Every ETH locked in staking contracts is temporarily effectively removed from circulation, which offsets a portion of new issuance and acts as a check on inflation. In total, Ethereum has minted approximately 157.18 million ETH to date. This figure is achieved after combining the 121 million in circulation and over 36.18 million locked in staking.

The dual mechanism of issuance and staking-driven absorption creates a balance in the networks monetary base. Although the deflationary narrative has softened for now, the long-term price impact will hinge on whether network activity can justify the growing supply.

If demand lags, inflationary pressure could weigh on valuation; if it matches or exceeds supply growth, the expansion may support continued price stability or appreciation.