Ethereum Price Surge: ETH Breaks $4,200 Amid Gas Limit Expansion and Treasury Activity
Ethereum has crossed the critical $4,200 threshold, marking a significant milestone for the second-largest cryptocurrency. The move past $4,200 triggered renewed discussion among traders about potential medium-term price targets. This price action coincides with important network upgrades and notable corporate treasury movements reshaping the Ethereum landscape.
Ethereum Mainnet Gas Limit Reaches New Heights
The Ethereum network gas limit increased by 3% last weekend, rising from 36 million to 37.3 million. This technical adjustment allows the network to process more transactions per second. Network throughput rose from 15 to 18 transactions per second following the increase.
The gas limit remained constant for over three years after Ethereum switched to proof-of-stake in 2022, before being increased to 36 million in February 2025. The current expansion represents another step toward greater network capacity. About half of the network’s validators are voting to further raise the gas limit to 45 million, which could reduce mainnet fees significantly.
ETH Price Analysis Shows Strong Technical Structure
The $4,200 level is viewed by many traders as a psychological barrier, with ETH previously rebounding from around $3,900. The 200-day moving average remains a critical support line near $3,568, which has consistently held over the past months. Technical indicators suggest the asset maintains a short-term bullish structure above key exponential moving averages.
Crypto analyst @swarmister noted that Ethereum forms a symmetrical triangle, typically a consolidation pattern following an impulse move. This pattern often precedes significant directional movements. Support is currently at $3,600 to $3,700, while confirmed breakout targets point toward $4,800 and $5,600.
Ethereum Treasury Firm Sells $40 Million in ETH
ETHZilla sold about $40 million worth of ether from its treasury on October 24, using the proceeds to fund a share buyback program. Since the sale, the firm bought back around 600,000 shares for roughly $12 million. The repurchases are part of a broader $250 million buyback plan.
The maneuver highlights the pressure digital asset treasury stocks face, with many now trading below their net asset value. ETHZ closed up 14.5% following the announcement, though this price remains about one-fifth of a recent high of about $107. The company plans to continue selling ETH to repurchase shares until the discount to net asset value normalizes.
BitMine Continues Aggressive ETH Accumulation
While ETHZilla reduces holdings, other treasury firms are expanding. BitMine Immersion Technologies purchased another 77,055 ether over the past week, valued at approximately $320 million. The company’s total crypto, equity, and cash holdings now amount to $14.2 billion, making it the largest corporate ETH holder.
Thomas Lee cited improving U.S.-China trade talks and historically favorable conditions for crypto during equity rallies as drivers behind the move. The contrasting strategies between treasury firms highlight different approaches to managing digital assets during volatile market conditions.
Fusaka Upgrade Brings Transaction Gas Cap
Beyond the overall gas limit increase, Ethereum is preparing for the Fusaka upgrade. Fusaka will feature an improvement proposal that sets the gas fee limit for each transaction, with EIP-7825 establishing a cap of 16.78 million gas per transaction. Fusaka is expected to launch on the mainnet on December 3, 2025.
Previously, a single transaction could consume the entire block gas limit of approximately 45 million gas, creating potential denial-of-service risks and preventing parallel execution. The new cap aims to improve block packing efficiency and prepare the network for better parallel processing in future execution environments.
Conclusion
For Ethereum to reach $4,500 by the end of 2025, it must confirm a breakout above the $4,150 to $4,220 level. Strong trading volume, continued spot buying, and reduced leverage risk would support this scenario. Exchange supply dropped to its lowest point since 2016, due to institutional accumulation pulling ETH off exchanges.
Standard Chartered raised its 2025 ETH target to $7,500, citing record ETF buying and stablecoin growth. However, reaching these ambitious targets will require sustained demand and favorable macroeconomic conditions. The market will closely watch whether Ethereum can maintain momentum independently of Bitcoin’s price movements.
