Ethereum News Today: Ethereum's September Weakness Stirs Debate Amid Record Rally

Ethereum (ETH) has surged over 25% in August 2025, driven by a combination of favorable macroeconomic conditions, robust institutional investment, and renewed interest from corporate treasuries. The price of ETH reached a new record high, surpassing $4,867 on Coinbase, the first such milestone since November 2021. This impressive rally comes as spot Ethereum ETFs attracted significant inflows, with over $2.86 billion entering the funds in the week ending August 15, according to CoinShares. These inflows contrast sharply with Bitcoin ETFs, which saw outflows during the same period.

A major catalyst for the ETH rally has been the dovish stance of the U.S. Federal Reserve. In his speech at the Jackson Hole symposium, Federal Reserve Chair Jerome Powell indicated openness to a 25 basis point rate cut in September, signaling a potential easing of monetary policy. This shift in monetary conditions has historically benefited risk assets, including cryptocurrencies. Ethereum's price movement aligns with this trend, as the token has benefited from increased liquidity and investor appetite for alternative assets.

Corporate adoption of ETH has also played a critical role in the price surge. Over the past month, corporate treasury firms have acquired approximately $1.6 billion worth of ETH, with major companies like BitMine, SharpLink, and GameSquare accumulating substantial holdings. As of mid-August, these firms held over $29.75 billion in ETH, according to data from StrategicETHReserve.xyz. This accumulation has not only reduced the circulating supply of ETH but also positioned the token as a utility-rich reserve asset rather than a speculative investment. Ray Youssef, CEO of finance app NoOnes, noted that this shift in perception could further bolster demand for ETH.

Despite the strong performance in August, historical patterns suggest a potential bearish shift in September. Since 2016, every year in which ETH experienced a bullish August was followed by a decline in September. The average loss for the month stands at -6.42%. This historical trend is particularly pronounced in post-halving years, with notable corrections in 2017, 2020, and 2021. The concern among investors is that the seasonal weakness could negate the gains made in August, especially in the context of portfolio rebalancing and potential tax-related selling as the year draws to a close.

Analysts remain divided on whether this year will break the historical pattern. Standard Chartered Bank recently raised its year-end ETH price target to $7,500, while some analysts, including Tom Lee of Fundstrat, have projected even higher prices, with potential targets of $13,000 in the near future. Lee attributes this optimism to the continued inflows into Ethereum ETFs, growing institutional adoption, and Ethereum's expanding role in decentralized finance (DeFi) and stablecoin ecosystems. However, these bullish forecasts come with the caveat that Ethereum must overcome its historical September weakness to achieve sustained price gains in the fourth quarter.

The current rally in ETH has also led to a notable shift in the broader cryptocurrency market. Bitcoin’s market dominance has fallen below 60% for the first time since March 2025, indicating a capital rotation into alternative cryptocurrencies. This shift is supported by the performance of Ethereum-focused investment products, which have outpaced Bitcoin ETFs in terms of inflows. Institutional investors are increasingly viewing Ethereum as a higher-return alternative to Bitcoin, further solidifying its position as the second-largest cryptocurrency by market capitalization.

Source: [1] ETH HIts New Highs as Fed Turns Dovish, Ether ETF Inflows Resume (https://cointelegraph.com/news/eth-hits-new-highs-as-fed-turns-dovish-ether-etf-inflows-resume) [2] Spot Ether ETFs See $287M Inflows, BlackRock, Fidelity Lead (https://cointelegraph.com/news/spot-ether-etfs-287m-inflows-blackrock-fidelity-eth-reserves) [3] As September Looms, Is Ethereum Due a Seasonable Correction? (https://cryptoslate.com/?p=495266) [4] Ether's August Rally Could Lead to September Downtrend, History Suggests (https://coinstats.app/news/614c448b55ea6658eb5703bcf431420f6f0c0841911e482dd144fcc3a8076970_-Ethers-August-rally-could-lead-to-September-downtrend-history-suggests-) [5] Ethereum Jumps 25% in August, but History Warns of a Risky September (https://www.cointribune.com/en/crypto-ethereum-jumps-by-25-in-august-but-september-could-change-everything/) [6] Getting ETH Exposure in 2025: Ether Near Record Highs, Tom Lee Sees $15K (https://finance.yahoo.com/news/getting-eth-exposure-2025-ether-013443509.html) [7] Getting ETH Exposure in 2025: Ether Near Record Highs (https://www.coindesk.com/markets/2025/08/24/getting-eth-exposure-in-2025-ether-near-record-highs-tom-lee-can-see-usd15k-by-year-end)