Bitcoin News Today: Ethereum Surpasses Bitcoin as Market Rotates Toward Fresh Momentum

Ethereum has emerged as the standout performer in the cryptocurrency market, outpacing Bitcoin as it hits an all-time high of $4,946, surpassing its previous peak set in November 2021. The move reflects shifting dynamics in crypto leadership, with analysts attributing this shift to weakening momentum in Bitcoin and growing demand for Ethereum. At the time of the price breakout, ether surged above $4,900 on Coinbase, entering a phase of price discovery with no prior resistance levels to hinder its ascent. This milestone has been characterized as a classic breakout pattern, where buyers absorbed available supply near historical ceilings and pushed the price to new highs [1].

The leadership shift in the crypto space was succinctly captured by analyst Miles Deutsher, who described it as “BTC is exhausted, ETH isn’t.” This phrase highlights the divergent trajectories of the two largest cryptocurrencies, with Bitcoin’s recent rallies faltering near previous highs while Ethereum continues to make fresh gains. Deutsher’s assessment aligns with broader market sentiment suggesting that traders are rotating into assets exhibiting stronger relative momentum as others show signs of fatigue [1].

Another factor contributing to Ethereum's upward trajectory is the dwindling supply of ETH on centralized exchanges. Exchange reserves, or the amount of ether held in wallets controlled by trading platforms, have been declining, indicating fewer coins are available for immediate sale. As demand for ether increases and liquid supply decreases, buyers are forced to bid higher prices to coax coins back into circulation, creating a self-reinforcing dynamic that can accelerate price gains [1].

Despite the bullish momentum, analysts have issued caution. Michaël van de Poppe, a noted crypto analyst, highlighted the risks associated with the unusually large price move over the weekend. He pointed out that weekend breakouts often experience retracements when liquidity returns to normal levels at the start of the week. This means that while a pullback toward the breakout zone may not negate the long-term bullish trend, traders should remain wary of short-term volatility [1].

Meanwhile, Bitcoin has experienced a sharp correction following its initial surge in response to Federal Reserve Chair Jerome Powell’s comments at the Jackson Hole symposium. The price of Bitcoin fell to as low as $110,779, its lowest level since early July, despite the Fed opening the door to rate cuts. The broader crypto market followed a similar trajectory, erasing most of its gains after the initial euphoria faded [2].

The volatility in Bitcoin has sparked renewed debate about the sustainability of the current bull market. Traders and analysts have pointed to several factors, including massive long liquidations, whale activity, and weakening on-chain metrics, as signs that the market may be entering a phase of consolidation or correction. Data from on-chain analytics firm CoinGlass revealed $640 million in crypto long liquidations within a 24-hour period, underscoring the fragility of the current rally [3]. Additionally, some traders have raised concerns that Bitcoin may retest the $100,000 level as a key support zone [3].

Ethereum’s continued strength, in contrast, has been attributed to a mix of regulatory developments, growing institutional demand, and technical improvements in the network. Ben Kurland, CEO of crypto research firm DYOR, noted that Ethereum ETFs are attracting steady inflows, while public companies are increasingly treating ETH as a storable asset that can be used for yield generation through staking. This has created a more stable and recurring source of demand for ether, distinguishing it from the more speculative retail-driven flows typically seen in Bitcoin [4].

As the crypto market navigates this period of uncertainty, the coming weeks will be critical in determining whether Ethereum can sustain its leadership role or if Bitcoin will regain momentum. For now, the data supports the view that Ethereum is in a stronger position to capitalize on favorable macroeconomic conditions and institutional adoption, making it a key focal point for traders and investors alike.

Source:

[1] As ETH Breaks Above USD4,900, Analyst Sums Up Crypto Market: “BTC Is Exhausted, ETH Isn’t” (https://www.coindesk.com/markets/2025/08/24/as-eth-breaks-above-usd4-900-analyst-sums-up-crypto-market-btc-is-exhausted-eth-isn-t)

[2] Ether Erases Gains from Jackson Hole Rally After Hitting New Record (https://www.cnbc.com/2025/08/24/crypto-market-today.html)

[3] BTC Bull Run Over at $111K? 5 Things to Know in Bitcoin This Week (https://cointelegraph.com/news/btc-bull-run-over-at-111k-5-things-bitcoin-this-week)