Ethereum News Today: ETH's Institutional Takeover: Why Ethereum Keeps Rising When Bitcoin Slows

Ethereum (ETH) is on track to establish a new all-time high as on-chain activity and exchange data indicate growing demand for the second-largest cryptocurrency by market capitalization. On Sunday, ETH surged above $4,900 for the first time, hitting an intraday high of $4,946.90 on Coinbase and surpassing its previous record of $4,867 from November 2021. This breakout marked a significant milestone in a long consolidation phase, with no prior historical resistance levels to impede the upward movement [1].

Analysts have noted a shift in momentum between major cryptocurrencies, with Bitcoin (BTC) showing signs of exhaustion while Ethereum continues to attract buyers. Miles Deutsher, a crypto analyst, described the situation as “BTC is exhausted, ETH isn’t,” pointing to the relative strength in Ethereum’s price action as buyers absorbed supply near the previous ceiling and pushed the price to new highs. This leadership shift is a common trading dynamic, where traders move capital to the asset demonstrating stronger follow-through and active dip-buying [1].

On-chain data further supports Ethereum’s bullish trajectory, with exchange reserves—coins held in wallets controlled by centralized platforms—showing a downward trend. When these reserves decline, fewer coins are immediately available for selling, which can create a supply shock effect. As demand rises and liquid supply dwindles, buyers must offer higher prices to coax coins off exchanges, potentially accelerating upward price movement [1].

However, some analysts have raised caution regarding the likelihood of a short-term pullback. Michaël van de Poppe, a market analyst, highlighted the unusually large weekly candle and warned that weekend breakouts often retrace when liquidity returns to normal levels at the start of the week. The idea is that thinner weekend order books can allow moves to extend more easily, but when participation increases on Monday, prices may retest the breakout area to confirm its strength before resuming the trend [1].

Meanwhile, Ethereum-based financial products are also contributing to the asset’s growing institutional interest. U.S. spot Ethereum exchange-traded funds (ETFs) now hold over 5% of the total ETH supply, according to on-chain data. These funds control 6.3 million ETH, valued at approximately $26.7 billion, or nearly 5.1% of the current supply. Additionally, digital asset treasuries hold over 2% of the total ETH supply, indicating a broader allocation of the asset across institutional portfolios [2].

Despite the bullish on-chain indicators, Ethereum has experienced some short-term volatility. Over the past 24 hours, ETH traded at $4,239, a 1.5% decline, while spot Ethereum ETFs saw $196.6 million in net outflows on Monday—the second-largest single-day outflows since their launch. However, this came after a week of strong inflows totaling $2.85 billion, suggesting that long-term interest in the asset remains robust [2].

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] Ethereum ETFs Hold Over 5% of ETH Supply (https://www.theblock.co/post/367378/ethereum-etfs-eth-supply)