Ethereum News Today: Ethereum Outpaces Bitcoin on 36% Surge, ETF Inflows Drive $4,000 Target: Galaxy CEO

Galaxy Digital CEO Michael Novogratz has predicted that Ethereum (ETH) could break the $4,000 level and outperform Bitcoin (BTC) within the next six months, citing strong institutional adoption, tightening supply, and robust on-chain metrics as key drivers [1]. This forecast aligns with broader market momentum, as Ethereum has surged over 36% relative to Bitcoin in the past 30 days, according to TradingView data [1]. Novogratz emphasized that a breakout past $4,000 could trigger a phase of price discovery for ETH, driven by reduced selling pressure and growing demand for exposure to Ethereum-based products.

Institutional investors have accelerated their accumulation of ETH, with entities such as BitMine Immersion Technologies and Sharplink Gaming holding millions of dollars worth of the asset. BitMine recently disclosed a $2.03 billion ETH position, while Sharplink holds $1.29 billion in ETH [1]. Additionally, Ether Machine, a firm managing over 400,000 ETH ($1.5 billion), plans to list on Nasdaq under the ticker “ETHM,” signaling further institutional confidence in the asset.

Ethereum ETFs have also outpaced Bitcoin ETFs in net inflows for six consecutive days, with BlackRock’s iShares Ethereum ETF (ETHA) leading the charge by attracting $1.79 billion—nearly 75% of the total $2.4 billion in Ethereum ETF inflows during the period [1]. ETHA reached $10 billion in assets under management in just 251 trading days, making it the third-fastest ETF to achieve the milestone. Fidelity’s FETH also set a new single-day inflow record of $210 million, surpassing its 2024 high. Swissblock Research analysts noted that this momentum reflects a broader shift in investor preference toward Ethereum as the crypto cycle advances [1].

On-chain data supports ETH’s potential outperformance. The ETH/BTC exchange inflows ratio remains below historical extremes, indicating subdued selling pressure compared to Bitcoin. Additionally, the ETH/BTC ETF holding ratio rose from 0.02 in May to 0.12, suggesting growing institutional favor for Ethereum. Glassnode’s cost basis model highlighted $4,500 as a critical resistance level, with a decisive break above $3,860 needed to sustain the upward trajectory toward $4,000 [1].

While Novogratz remains bullish on both ETH and BTC, he acknowledged risks, including potential shifts in U.S. monetary policy sentiment—particularly if President Donald Trump reverses his stance on rate cuts [1]. Other analysts have projected even higher targets, with BitMEX co-founder Arthur Hayes forecasting $10,000 for ETH by year-end and Bitfinex analysts citing $136,000 as a potential ceiling for Bitcoin, albeit with warnings about market euphoria [1].

Ethereum’s supply dynamics, driven by staking activity and deflationary mechanics, are seen as critical to its long-term price action. The network’s transition to proof-of-stake has incentivized long-term ETH retention, reducing circulating supply and enhancing network security. Combined with DeFi’s expansion of Ethereum’s utility beyond a store of value, these factors position ETH to challenge Bitcoin’s dominance in the next phase of the bull market [1].

Source: [1] [ETH on Track to Hit $4K And Beat Bitcoin: Galaxy Digital CEO](https://coinmarketcap.com/community/articles/688348b632b65702e7fcfecf/)