Ethereum News Today: Ethereum Breaks Free as Bitcoin’s Momentum Fades

Ethereum’s native token, Ether (ETH), surged above $4,900 for the first time, reaching an all-time high of $4,946 on Coinbase at 5:40 p.m. UTC, surpassing its previous record of $4,867 from November 2021 [1]. The price action marked a significant technical breakout, with no historical overhead resistance to hinder further gains, a situation described by traders as “price discovery” [1]. On a five-day chart, ETH showed strong momentum, moving through key levels after consolidating for years [1]. Analysts noted that the absence of prior chart resistance allowed buyers to absorb supply at old ceiling levels and push the price higher in a classic breakout pattern [1].

The surge in ETH came amid a broader shift in market dynamics, with Bitcoin (BTC) showing signs of weakening momentum. Miles Deutsher, a market analyst, summarized the trend as “BTC is exhausted, ETH isn’t,” highlighting a relative strength shift [1]. Traders often rotate into the asset exhibiting stronger follow-through when the other leader shows fatigue, a dynamic that appears to be playing out in the current market environment.

Exchange reserves, or the amount of ETH held in centralized trading venues, also played a role in the price action. As these reserves trended downward, fewer coins became immediately available for sale, creating a scarcity effect. This dynamic, referred to as a “supply shock,” could amplify price movements as buyers must bid higher to coax coins off exchanges [1]. Corporate Ethereum treasury adoption further supported ETH’s rise, with companies like BitMine Immersion and SharpLink Gaming collectively acquiring over $10 billion in ETH [3]. This accumulation contributed to a shrinking available supply, reinforcing upward pressure on the price.

Regulatory clarity also bolstered Ethereum’s prospects. The U.S. Securities and Exchange Commission (SEC) provided clearer guidance on staking services, allowing liquid staking providers to offer rewards without additional registration [3]. Additionally, the passage of the GENIUS Act established a U.S. regulatory framework for stablecoins, a significant portion of which operate on the Ethereum blockchain [3]. These developments created a more favorable environment for institutional and retail investors alike.

The rally coincided with a drop in Bitcoin’s market dominance, with BTC’s share of the total crypto market capitalization falling below 60% for the first time since March [4]. This decline signaled a capital rotation into altcoins, particularly large-caps like ETH, as traders and institutions sought higher returns [4]. Ethereum-focused investment products attracted $2.86 billion in the week ending August 15, outpacing Bitcoin’s $552 million inflows [4]. Month-to-date, ETH fund holdings had surged by over $2.96 billion, while BTC products recorded modest outflows [4].

Analysts and industry figures, including Arthur Hayes of BitMEX and Standard Chartered, expressed bullish sentiments. Hayes predicted ETH could reach $10,000 or even $20,000 by the end of the cycle, citing the potential for major quantitative easing under a future administration [3]. Standard Chartered raised its year-end ETH price target to $7,500, with some analysts expecting $13,000 in the coming months [4]. The bullish case was further supported by the resumption of inflows into Ethereum ETFs, which saw record-breaking capital influxes in July [4].

Despite the strong momentum, some analysts cautioned against over-optimism. Michaël van de Poppe highlighted the large weekly candlestick and noted that weekend breakouts often retrace when liquidity normalizes early in the week [1]. This pattern, while not a guarantee of price declines, suggests that a short-term pullback toward the breakout zone could occur before the longer-term bullish trend resumes.

Source:

[1] Ethereum News: As ETH Soars, Analyst Explains Why ... (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 briefly touches new high, nears $5,000 (https://finance.yahoo.com/news/ethereum-jumps-record-price-move-184709473.html)

[3] Why Arthur Hayes Expects Ethereum to Surge to $20,000 (https://finance.yahoo.com/news/why-arthur-hayes-expects-ethereum-210103605.html)

[4] ETH Soars To New All-time High On Fed Rate Cut Signal (https://cointelegraph.com/news/eth-hits-new-highs-as-fed-turns-dovish-ether-etf-inflows-resume)