Ethereum News Today: Ether's 'Belief Zone' Signals Institutional Bet on $10K Future

Ethereum (ETH) has approached its all-time high, reaching $4,945.60 on August 24, surpassing its previous record of $4,878 from November 2021. This surge has been attributed to growing institutional interest, increased adoption of ether-based treasury strategies, and bullish sentiment in the market. Ether’s price has risen over 240% since April, marking a significant shift in investor behavior within the cryptocurrency ecosystem [3].

On-chain data suggests Ethereum is entering a phase of heightened investor confidence. The long-term holder (LTH) net unrealized profit/loss (NUPL) indicator has moved into the “belief” zone, historically associated with major price rallies. This metric indicates that long-term investors, who hold ETH for at least 155 days, are experiencing substantial unrealized gains, reflecting a market in transition toward optimism [1]. Analyst Gert van Lagen highlighted that such a scenario precedes significant price movements and that Ether could still see substantial gains, with $10,000 and even $20,000 not considered out of reach [1].

The market value to realized value (MVRV) ratio further supports this bullish outlook. At 2.08, the ratio is well below its previous peaks in 2017 and 2021, indicating that Ethereum remains undervalued relative to its realized value. This suggests that the market is still in a phase where profit-taking is subdued, leaving room for further appreciation. Additionally, MVRV extreme deviation pricing bands indicate that Ethereum could potentially rise to $5,500 before reaching an extreme profit threshold [1].

From a technical perspective, Ether’s price action has validated a bullish megaphone pattern on the weekly chart, which has been forming since December 2023. Analyst Jelle noted that Ether has successfully broken through multiple resistance levels and that the pattern targets a price of $10,000. Another analyst, Mickybull Crypto, pointed to the daily chart showing a breakout from a rounded bottom pattern, with a target of $12,130. This would represent a 161% increase from current levels [1].

However, Ethereum recently faced a pullback, with the price declining by 8% to $4,400 after hitting an all-time high of $4,956. The drop occurred amid increased accumulation from BitMine and Bitcoin whales. BitMine, which has been actively building its Ethereum treasury, now holds over 1.7 million ETH, with a combined value of more than $8.8 billion. Meanwhile, a major Bitcoin whale reduced its BTC holdings by $2.5 billion and converted much of it into ETH across spot and derivatives markets [2]. This movement aligns with broader trends observed in historical bull cycles, as whales and institutional players continue to shift their capital into altcoins.

Ethereum’s price is currently testing key support levels at $4,500, with the 14-day Exponential Moving Average (EMA) acting as a crucial indicator. If the price falls below this level, it could face further declines toward $4,100–$4,000. On the other hand, a sustained close above $5,000 could validate a bullish pennant pattern, potentially pushing the price toward $6,000. Analysts also point to potential catalysts for further gains, including possible interest rate cuts, the approval of spot Ethereum ETFs, and continued demand from Ethereum treasury companies [2].

Source:

[1] Ether Price Enters 'Belief Zone' Following $5K All-Time Highs (https://cointelegraph.com/news/20k-eth-price-in-play-ethereum-belief-zone)

[2] Ethereum Price Forecast: ETH plunges 8% amid strong accumulation from BitMine and Bitcoin whales (https://www.fxstreet.com/cryptocurrencies/news/ethereum-price-forecast-eth-plunges-8-amid-strong-accumulation-from-bitmine-and-bitcoin-whales-202508252040)

[3] Ether, Ethereum's coin, breaks 2021 all-time high (https://www.axios.com/2025/08/24/ether-all-time-high)