Focused on privacy and security, DJED will be molded into a multi-chain asset, providing the foundation for both open and private finance.

Open-Source Features

Announced at the Rare Evo blockchain conference and shared to CryptoPotato via a news release, COTI, the EVM-compatible, privacy-focused Layer 1 (L1), unveiled the next step in DJED’s development.

Recall that the algorithmic stablecoin was introduced in 2023 alongside IOG (now IOHK), an infrastructure, research, and engineering blockchain company founded by Charles Hoskinson and Jeremy Wood.

Three major upgrades are designed to propel DJED into a new type of digital asset, introducing a new class of use cases and further bolstering its position as core infrastructure for Web3.

It has consistently held its peg since inception, outperforming its peers and making it one of the more robust stablecoins on the market. COTI is now open-sourcing key parts of its infrastructure (order API, chain indexer, frontend) to encourage developers and communities to build around it.

Software engineers will be able to build custom front ends for it, integrate the stablecoin’s functionality into wallets or decentralized applications (dApps), and run secure backend services to interact with it.

IOG noted the following:

“Open sourcing DJED gives Cardano developers the ability to inspect, extend, and build directly on the protocol, with transparency, driving faster innovation and deeper trust.
This is a complex system engineered for uniquely high assurance: it’s grounded in formal methods, backed by extensive testing, and has been running reliably on mainnet for 2.5 years.”

DJED, Private, And On Multiple Fronts

COTI will also introduce Private DJED, the first enterprise-ready, private stablecoin, which will launch across several blockchains. By open-sourcing DJED, the privacy layer will provide a wrapped version of it on its infrastructure.

The private iteration will be suitable for companies, institutions, and users who value privacy alike. Sending and receiving, as well as interacting with it, will be confidential; however, COTI’s capabilities extend beyond the coin’s current capacity, allowing it to be incorporated into more complex dApps and DeFi flows. 

The secure and private computation-focused Layer 1 is powered by garbled circuits (an encryption method), which provide reliable and scalable privacy-oriented infrastructure that will help DJED lead the way for privacy-first financial primitives. 

Currently, the Cardano chain is the home of DJED’s infrastructure; however, the private version will ensure that its foundation is prepared for the next wave of adoption. The layer’s programmability will ensure that users can decide how, when, and with whom they will transact.

Additionally, they will be able to send and receive the stablecoin privately, ensuring that only the parties they select will be aware of the amounts sent and their respective addresses, while remaining compliant.

Ethereum is trading around $4,200 after a strong rally from the $2,400 range. It is approaching the crucial $4,400 resistance level.

The altcoin is now facing conflicting exchange trends, as its macro bullishness is being challenged by rising Binance inflows ahead of major resistance.

Long-Term Bulls vs. Short-Term Bears

In its latest analysis, CryptoQuant revealed that momentum indicators, including the MACD and buying volume, remain positive, but the price is nearing a historically significant supply zone.

On-chain data presents a mixed picture. The Exchange Supply Ratio (ESR) across all exchanges has been in steady decline since 2022. It is currently hovering near 0.16, which means that investors are withdrawing ETH from exchanges and reducing sell-side liquidity. Such a trend is a structurally bullish signal for the long term.

Binance-specific metrics, on the other hand, tell a different short-term story. The Binance ESR has been climbing since early 2025 and reached about 0.04, which indicates some holders are moving ETH onto the platform, possibly for selling, arbitrage, or participation in exchange programs.

Recent netflow data also shows significant positive inflows into Binance, which, given the proximity to major resistance, may signal readiness for selling. This divergence points to two possible scenarios.

A breakout above $4,400 could occur if Binance inflows subside or ESR stabilizes. This move could potentially push ETH toward $4,800 and a retest of its all-time high.

On the flipside, continued heavy inflows and a rejection at $4,400 could lead to a pullback toward the $3,950-$4,000 support zone before another breakout attempt.

Zooming out, the broader downtrend in the all-exchange ESR supports a bullish macro outlook, but short-term traders should monitor Binance ESR and netflows closely for signs of near-term selling pressure.

CryptoQuant added that long-term investors may focus on the structural trend, which remains favorable despite potential short-lived corrections.

Retail Hype and Institutional Positioning

Ethereum’s latest surge is driven by a mix of retail enthusiasm, institutional accumulation, and record supply growth.

As recently reported by CryptoPotato, social media sentiment strongly favors the bulls, with hashtags like #buying and #bullish trending at nearly double the rate of bearish tags. Santiment revealed that while optimism is high, excessive FOMO could briefly cool momentum.

Meanwhile, institutional interest has been equally impactful – between July 10 and early August, over 1.035 million ETH, worth roughly $4.17 billion, were acquired by large players at an average price of $3,546. These purchases were made through exchanges and institutional channels, have aligned with a 45% rally from $2,600.

To top that, Ethereum’s circulating supply also hit a record 121 million ETH on August 9, nearly three years after crossing 120 million.

Ethereum has maintained its bullish momentum, decisively breaking through key resistance zones and reclaiming the psychological $4K level.

While some cooling-off is likely, the broader trend still favors further upside.

By Shayan

The Daily Chart

After sweeping liquidity beneath the $3.5K region, ETH attracted strong buying interest, igniting a sharp rally. The upward move propelled the price above the $4K threshold, a level which is significant both psychologically and as a previous swing high on the daily chart.

This breakout underscores sustained market demand, but with price now trading firmly above $4K, a short-term pullback to retest this area remains a possibility. Such a retracement could serve as a healthy reset before continuation toward the next key resistance at $4.5K.

The 4-Hour Chart

Zooming in, ETH’s price has cut through multiple resistance levels with strong bullish conviction, reflecting increased buying momentum.

However, the current position suggests the market may be ready for a corrective phase to absorb fresh demand before resuming its climb.

The 0.5–0.618 Fibonacci retracement zone, aligned with Ethereum’s established multi-month uptrend, represents a probable support area if a pullback unfolds. Holding this region would strengthen the case for another leg higher, potentially driving the price into uncharted territory toward a new all-time high.

By Shayan

The ETH Liquidation Heatmap suggests a relatively clear path toward Ethereum’s all-time high, with no major liquidity clusters obstructing the advance.

However, a significant pocket of liquidity is positioned near the $3.6K level, likely reflecting the liquidation points of long positions accumulated during the recent rally. This area marks a dense concentration of leveraged futures exposure, making it an attractive target for market makers and large players seeking to trigger liquidity events.

Given this setup, a retracement toward the $3.6K zone remains a plausible scenario, potentially flushing out these positions before the market resumes its upward push. Traders should monitor this level closely, as liquidity hunts in such areas often result in sharp, fast price movements and heightened volatility once the zone is engaged.