Ethereum News Today: Ether's Supply Shock Fuels Record $4,900 Surge Over Bitcoin's Stalled Momentum

Ethereum (ETH) has reached a new all-time high, surpassing $4,900 for the first time in its history. As of 5:40 p.m. UTC on Sunday, the cryptocurrency traded at $4,946 on Coinbase, breaking its previous record of $4,867 set in November 2021. This milestone represents a significant shift in momentum for ether, with analysts pointing to weakening performance in Bitcoin as ether demand continues to grow. The surge in price has been driven by a combination of factors, including reduced supply on exchanges and increased institutional interest, which has led to a tightening of available liquidity and a stronger buyer base [1].

The breakout has been characterized by what traders describe as “price discovery,” where the market is establishing new levels without the guidance of historical resistance. Analyst Miles Deutsher highlighted this dynamic, stating that ether is showing signs of stronger follow-through compared to Bitcoin, which has seen multiple stalled attempts to move beyond recent highs. The shrinking supply on exchanges, as noted by Crypto Rover, plays a key role in the price movement, with fewer coins available for immediate sale forcing buyers to bid higher to attract sellers. This phenomenon, referred to as a “supply shock,” can amplify upward trends as demand increases [1].

Institutional investors have also played a role in ether’s rise. Several asset management companies have started allocating capital to ether, mirroring the strategy of firms like Michael Saylor’s MicroStrategy. Additionally, a growing interest in ether-based ETFs has contributed to increased demand. James Butterfill, head of research at CoinShares, emphasized that Ethereum’s role in facilitating large stablecoin transactions is likely to expand following the passage of the GENIUS Act, further reinforcing its foundational position in the blockchain space. The constrained supply of new ether, combined with rising demand, is seen as a structural advantage that supports long-term price resilience [2].

While the current momentum is strong, some analysts have issued cautionary notes. Michaël van de Poppe pointed out that the large price movement over the weekend could lead to a short-term retracement when liquidity returns to normal levels early in the following week. Such patterns are not uncommon, as thinner order books on weekends can lead to exaggerated price swings. If a pullback occurs, it would likely test the breakout level, potentially confirming it as a support zone before resuming the upward trend [1].

In parallel, the DeFi space continues to evolve, with recent developments affecting major protocols like Aave. The Aave (AAVE) token dropped more than 8% following rumors of a proposed 7% allocation of World Liberty Financial (WLFI) tokens to the Aave DAO. Although the WLFI team denied the claims, the uncertainty led to market volatility. Stani Kulechov, Aave’s founder, later affirmed the validity of the original proposal, signaling continued engagement with the WLFI project. The episode reflects the ongoing challenges DeFi protocols face in managing governance and external partnerships in a rapidly changing ecosystem [5].

Meanwhile, Remittix (RTX) has emerged as a promising new player in the PayFi sector. The project recently concluded a successful presale campaign, raising over $20.4 million and selling 610 million tokens at $0.0969 each. The project has also announced a listing on BitMart, significantly enhancing liquidity for RTX holders. A key milestone for Remittix is the upcoming release of its beta wallet in Q3 2025, which will enable real-time crypto-to-bank transfers in over 30 countries. This development underscores the project’s focus on real-world utility and cross-border payments, with the potential to bridge the gap between DeFi and traditional financial systems [3].

Source:

[1] Ether Soars as ETH Breaks USD 4,900 (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, Ethereum's Coin, Breaks 2021 All-Time High (https://www.axios.com/2025/08/24/ether-all-time-high)

[3] Remittix Captures Retail Momentum After Posting 540% Return (https://www.mitrade.com/insights/news/live-news/article-3-1063784-20250823)

[4] Remittix Presale Skyrockets Past $20M After Revealing First Major Exchange Listing With More to Follow (https://www.globenewswire.com/news-release/2025/08/20/2957753/219711/en/Remittix-Presale-Skyrockets-Past-20M-After-Revealing-First-Major-Exchange-Listing-With-More-to-Follow.html)

[5] Aave Drops Over 8% on Rumors of World Liberty Financial Token Allocation (https://cointelegraph.com/news/aave-tumbles-rumors-world-liberty-token)