Ethereum News Today: Ether surges past $4,000 as ETH/BTC ratio hits near-annual high

Ether (ETH) climbed above $4,000 on August 3, 2025, marking the first time since December 2024 that the cryptocurrency has crossed this key threshold [1]. The price surge came amid a broader shift in investor sentiment, with altcoins outperforming Bitcoin in recent trading sessions. At the same time, Bitcoin (BTC) remained relatively flat, hovering near $116,800 [1]. This divergence in price action has pushed the ETH/BTC ratio to nearly its highest level of the year, signaling a stronger relative performance for Ether [1].

The $4,000 level is a significant milestone for Ether, particularly as it reflects a rare break above a long-term resistance. Investors and traders are interpreting the move as a sign of renewed confidence in Ethereum’s fundamentals, including its ongoing network upgrades and expanding ecosystem of decentralized applications [1]. The ratio between Ether and Bitcoin has climbed 3% in the past hour and is now up 42% over the last month, highlighting a growing preference for Ethereum among traders [1]. Over the year-to-date period, the ETH/BTC ratio has declined 4%, but the recent rise suggests a reversal in short-term sentiment.

While Ether’s price performance has been impressive, Bitcoin has shown minimal movement over the past 24 hours. This lack of volatility has further amplified the relative strength of Ethereum. The ETH/BTC ratio has not reached this level since the beginning of the year, indicating that investors are allocating capital to Ethereum in greater proportion than Bitcoin. This pattern is often observed during bull cycles for Ethereum, particularly when there is anticipation of key upgrades or regulatory clarity [1].

The broader altcoin market also saw gains over the past 24 hours. XRP rose 9%, Solana (SOL) advanced 3.5%, and Dogecoin increased by 5.3% [1]. The uptrend in altcoins aligns with the rise in the ETH/BTC ratio and suggests that market participants are rotating capital away from Bitcoin and into smaller, more speculative assets. Ether treasury company stocks also moved higher, with Bitmine Immersion (BMNR) rising 13% and Sharplink Gaming (SBET) gaining 4% on Friday [1].

Ethereum’s market capitalization remains strong, sitting at approximately $470.98 billion as of August 4, 2025 [2]. Although this is a 24% decline from its all-time high of $4,721.07 on November 11, 2021 [2], the current valuation still reflects investor optimism about Ethereum’s long-term potential. The cryptocurrency has gained 25% year-to-date and 112% year-over-year [1], indicating that the market is pricing in future growth despite recent challenges.

The performance divergence between Ethereum and Bitcoin raises important questions about the evolving dynamics of the crypto market. While Bitcoin continues to dominate in terms of market capitalization, Ethereum’s rising ETH/BTC ratio suggests a shift in investor strategy, with more capital being directed toward altcoins and Ethereum-based assets. This trend reflects a broader market maturation, as investors diversify their portfolios and seek exposure to a wider range of digital assets.

The rise in Ether above $4,000 and the ETH/BTC ratio reaching near-annual highs are significant developments in the crypto space. These movements reflect a shift in investor sentiment, with Ethereum gaining traction in a market that has largely remained flat for Bitcoin. Whether this trend continues will depend on a variety of factors, including regulatory developments, macroeconomic conditions, and the success of Ethereum’s ongoing upgrades. For now, the market is sending a clear signal: Ethereum is regaining its position as a key player in the cryptocurrency landscape.

Source:

[1] Ether Soars Above USD4K for First Time Since December

https://www.coindesk.com/markets/2025/08/08/ether-soars-above-usd4k-for-first-time-since-december

[2] Ethereum Price, ETH Price, Live Charts, and Marketcap

https://www.coinbase.com/price/ethereum