Ethereum News Today: OKB Soars 66% as Ethereum Strength Drives Mid-Cap Rotation

The crypto market experienced a notable shift in capital flow during the week of August 24, 2025, with Ethereum’s strength drawing attention away from Bitcoin and into mid-cap assets and exchange tokens. OKB emerged as the standout performer, surging approximately 66% from its weekly opening price of $117 to a peak near $258, driven by strong volume and bullish momentum indicators. The token tested a key resistance zone near $258 after consecutive large bullish candles on August 20–21, and while a 24% retracement suggested short-term profit-taking, technical indicators like the MACD remained in a bullish stance. Analysts noted that if OKB holds the $190–$200 support range, a potential move toward $300 could follow [1].

The broader market environment was influenced by a dovish tone from Federal Reserve Chair Jerome Powell, which boosted risk appetite and encouraged investors to pivot toward smaller-cap and alternative assets. This rotation was evident as capital moved away from major cryptocurrencies like Bitcoin, which retraced about 3%, into mid-cap tokens such as MORPHO and Arbitrum. MORPHO gained approximately 26%, rising from a $2 base as buyers defended resistance levels, though recent volume cooling raised concerns about a potential pullback to $2.30 if upward pressure wanes [1]. Arbitrum posted a modest 6% weekly gain, continuing a three-week rally with a healthy technical structure that has yet to show signs of overheating [1].

In contrast, some tokens experienced sharp declines. Pump.fun (PUMP) dropped nearly 20%, marking its first negative week in a month due to its failure to hold key support at $0.04. SKY and SPX also fell significantly, with SKY slipping to $0.06 after breaking below $0.07 and SPX declining to $1.30 amid confirmed breakdowns and fading momentum [1]. These large divergences across the market underscored the high dispersion of performance, with both parabolic pumps and sharp retracements occurring within the same week.

The overall market sentiment has shifted to a cautiously optimistic stance, with the capital rotation into mid-caps and exchange tokens indicating renewed buyer confidence. However, traders are being advised to remain cautious, as several top performers showed short-term retracements. The key to navigating this volatility lies in disciplined risk management, including defined stop-loss levels and close monitoring of critical support zones [1].

Source: [1] OKB Could Extend Rally as Ethereum Strength Sparks Mid‑Cap Rotation and Increased Market Bullishness (https://en.coinotag.com/okb-could-extend-rally-as-ethereum-strength-sparks-mid%e2%80%91cap-rotation-and-increased-market-bullishness/)