Ethereum News Today: Ethereum-Linked IP Surges 30%—DeFi's Quiet Power Play Unfolds

IP, the token associated with the Ethereum-based project Polynomial, surged 30% to $7.90 on August 30, 2025, reaching a new all-time high (ATH) and capturing attention in the fast-moving cryptocurrency market [1]. The price move implies a pre-rally level of around $6.08, with a gain of approximately $1.82, according to calculations derived from a tweet by the analytics account @PolynomialFi. This sharp increase has sparked interest among traders and investors, particularly in the context of broader market dynamics and potential correlations with major cryptocurrencies like Bitcoin and Ethereum .

The price action for IP resembles a classic breakout pattern, where the asset has moved decisively above previous resistance levels and is now testing higher support and resistance zones. Analysts suggest that key technical levels to watch include $6.50 as a potential retracement support and $9.00 as a next resistance threshold. While the source does not provide details on trading volume or exchange activity, the magnitude of the move typically corresponds with increased liquidity, which could signal strong on-chain activity or whale-driven buying pressure [1].

The IP rally is occurring against a backdrop of generally positive sentiment in the cryptocurrency market, with Bitcoin and Ethereum both showing resilience. If Bitcoin remains above the $60,000 level, it may create a favorable environment for altcoins like IP to continue their upward trend. The broader DeFi sector, in which IP is embedded, has seen renewed interest from institutional investors, which could further fuel the token’s growth. The project's integration with Ethereum and its positioning as part of the Superchain ecosystem may also contribute to its appeal [1].

From a trading strategy perspective, the move offers opportunities for both short-term and long-term investors. Day traders may consider entering long positions above $7.90 with a stop-loss near $7.50, aiming for a take-profit at $8.50. Swing traders could look to accumulate during dips, using moving averages such as the 50-day EMA as confirmation signals. However, due to the high volatility in the crypto market, risk management is essential, with experts recommending no more than 2–5% of a portfolio be allocated to any single trade [1].

Market observers are also tracking potential cross-asset correlations. If IP’s growth is tied to developments in DeFi or AI-related technologies, movements in stocks within the tech sector—especially in the semiconductor and AI industries—could influence investor sentiment. For instance, positive performance in AI-driven equities might indirectly support IP if the token is aligned with those innovations. Traders are advised to monitor not just price levels but also broader market indicators, such as on-chain metrics and transaction volumes, to gauge the sustainability of the rally and anticipate future movements [1].