Ethereum News Today: Ethereum Steals Bitcoin's Spotlight in 14-Month Trading Surge

ETH/BTC ratio reached 0.0418 on August 20, 2025, marking a 135% cumulative increase from the April 22nd low of 0.0295 [3]. This surge highlights a notable shift in market dynamics, with Ethereum outperforming Bitcoin in relative terms for the first time in over six months. Ethereum’s price has risen to $4,306, reflecting a weekly gain of 0.7% despite a recent correction from a high of $4,774 [3]. In contrast, Bitcoin has seen relatively weaker demand, with ETF inflows slowing to their weakest since April and apparent demand dropping from 174,000 BTC in July to 59,000 BTC as of August 20 [4].

The growing ETH/BTC ratio is attributed to increased spot and derivatives trading volumes, with weekly spot volume for ETH relative to BTC reaching an all-time high. Ethereum has traded nearly three times the volume of Bitcoin last week, signaling a shift in capital flows toward the second-largest cryptocurrency [3]. Open interest in ETH/BTC perpetual futures has also surged to 0.71, its highest level in 14 months, indicating heightened speculative positioning [3]. OKX Singapore CEO Gracie Lin noted that this trend reflects a more selective crypto market, where investors are rotating capital into Ethereum rather than broad alts [4].

Institutional demand for Ethereum has also gained momentum, with investment funds holding approximately 6.1 million ETH as of August 20. This figure represents a 68% increase since December 2024 and a 75% rise compared to April 2025 levels. The fund market premium for ETH has widened to 6.44%, significantly higher than previous cycle peaks [3]. Analysts suggest that the approval of Ethereum-based ETFs, including BlackRock’s offering, has played a key role in attracting institutional capital. With the potential for staking to be integrated into ETFs, further inflows could accelerate, especially as the proposed CLARITY Act seeks to classify both ETH and BTC as digital commodities [3].

Ethereum’s relative strength has been reinforced by broader market conditions. The ETH/BTC ratio has climbed to 0.0368 as of August 20, the highest level in 2025 [3]. This growth coincides with Ethereum’s rising relevance in decentralized finance (DeFi), tokenization, and smart contracts, which continue to draw institutional and retail interest. Meanwhile, Bitcoin has experienced heavy profit-taking, with whales realizing $2 billion in gains on August 16 alone, contributing to a broader “bullish cooldown” phase as investors consolidate positions [4].

The recent strength in ETH has also influenced the broader crypto market, with ether outpacing Bitcoin by 5.8% in the last week while BTC rose just 1.4%. This trend reflects a more concentrated and selective market dynamic, with capital favoring Ethereum and other resilient assets over speculative altcoins [4]. Analysts at Enflux, a Singapore-based market maker, observed that the altcoin market is no longer a uniform beta trade, with institutional and macro-driven convictions shaping investor behavior [4].

Source: [1] 5 Best Cheap Altcoins to Buy in 2025 – Ethereum, Cardano ... (https://crypto-economy.com/5-best-cheap-altcoins-to-accumulate-now-ethereum-cardano-magacoin-finance-named-top-picks/) [2] Ethereum (ETH) News Today (https://www.theblock.co/tag/ethereum/215) [3] Ethereum vs. Bitcoin: ETH/BTC Ratio Climbs to Yearly ... (https://www.mitrade.com/insights/news/live-news/article-3-1053086-20250820) [4] Asia Morning Briefing: BTC Demand Cools While 'Crypto ... (https://finance.yahoo.com/news/asia-morning-briefing-btc-demand-000910938.html) [5] Ethereum, Bitcoin Spike After Powell Signals Interest Rate Cut (https://finance.yahoo.com/news/ethereum-bitcoin-spike-powell-signals-143138288.html)