Ethereum News Today: Ethereum's Rise Signals Shift in Investor Appetite Toward Risk

Ethereum (ETH) futures trading volume reached a record $162.6 billion in early August 2025, surpassing Bitcoin’s share of derivatives activity as open interest and funding rates climbed. The surge reflects growing institutional and retail investor confidence in Ether, particularly amid improving macroeconomic sentiment and heightened onchain activity.

Ethereum’s price climbed to a near-four-year high, pushing the token closer to its 2021 peak of $4,868. Over the past 30 days, the cryptocurrency has gained approximately 33%, supported by a 63% increase in network transactions and a 26% rise in active addresses, according to Nansen data. In contrast, competing blockchains such as Solana and BNB Chain saw minimal or negative activity growth, reinforcing Ethereum’s position as the dominant smart contract platform.

The increased bullish momentum has been reflected in derivatives markets. Open interest in Ether futures stood at $69 billion, with leveraged positions accounting for 14.4 million ETH, remaining stable from the prior week. Notably, the annualized premium for ETH 30-day futures climbed to 7%, up from 4% earlier in the week, signaling growing demand for leveraged exposure. This trend was further supported by robust buying activity in futures markets, with traders executing aggressive long positions for the first time in over a month, according to analysis by X user JA_Maartun.

The shift in investor sentiment was also evident in the broader market. Bitcoin’s dominance in the cryptocurrency market slipped to 59% from 65% over the past two months, as capital moved toward higher-beta assets like Ether. Institutional traders have been a key driver of this trend, with CME Ether futures open interest hitting an all-time high of $8.3 billion on August 20, 2025. The increasing liquidity and volatility in ETH markets have made it an attractive option for sophisticated traders seeking higher returns.

Macroeconomic factors also played a role in the rally. Comments from U.S. Federal Reserve Chair Jerome Powell at the Jackson Hole Economic Symposium fueled expectations of rate cuts, with bond markets pricing in a 45% chance of rates falling to 3.5% or below by March 2026. This easing of monetary policy reduced financial pressure on equities and other risk assets, contributing to a broader risk-on environment that benefited Ethereum and other digital assets.

As Ethereum continues to gain traction, the next key price level to watch is $5,000, a level not seen since 2021. Strong fundamentals, rising onchain metrics, and robust futures market activity all suggest that a breakout could be imminent. The convergence of these factors highlights a shift in market dynamics, with Ethereum increasingly viewed as a core digital asset in a diversified portfolio.

Source: [1] ETH Data and Return of Investor Risk Appetite Pave Path to $5K Ether Price (https://cointelegraph.com/news/eth-data-and-return-of-investor-risk-appetite-pave-path-to-5k-ether-price) [2] Ethereum Futures Interest Hits Record as Token Erodes Bitcoin Dominance (https://thedefiant.io/news/markets/ethereum-futures-interest-hits-record-token-erodes-bitcoin-dominance-31096a37)