Ethereum News Today: Ethereum Steals Bitcoin's Spotlight as Institutional Confidence Surges

Ethereum has surged in relative strength against Bitcoin in the second half of August 2025, with the ETH/BTC exchange rate reaching 0.0368, the highest level since early 2025 [5]. This metric signals a significant shift in market dynamics as Ethereum gains traction in both spot and derivatives markets. The altcoin’s performance is underpinned by increased institutional and whale activity, as well as robust onchain metrics that indicate growing market share and trading volume.

Ethereum’s spot trading volume exceeded Bitcoin’s by nearly three times last week, according to CryptoQuant, highlighting renewed investor interest in the second-largest cryptocurrency [5]. This trend is further supported by elevated derivatives positioning, with the ETH/BTC perpetual futures open interest ratio reaching 0.71, the highest in 14 months [5]. The surge in speculative activity underscores the growing appeal of Ethereum as a hedging and leveraged investment vehicle, particularly as Bitcoin faces profit-taking and volatility compression.

Onchain data reveals that Ethereum’s dominance in the broader crypto market has grown as Bitcoin’s share of total market cap dipped from 64.5% in early July to 59.7% by mid-August [1]. Ethereum’s network transactions increased by 26% month-over-month to 12.9 million, the highest since November 2024, while median fees declined to 421 sats, the lowest since September 2024. The reduction in transaction costs, partially attributed to a slowdown in ordinal inscription activity, has made Ethereum a more attractive option for both retail and institutional traders.

Meanwhile, Ethereum’s price action reflects a combination of short-term consolidation and long-term bullish momentum. After reaching a 2025 high of $4,724 on August 13, ETH retreated to $4,289 as of August 18, a 5.53% pullback over 24 hours [2]. Technical indicators such as the RSI and MACD suggest neutral to mildly bullish conditions, with Ethereum trading well above its 20-day and 50-day moving averages. Institutional investors have remained optimistic, with Standard Chartered raising its year-end ETH price target to $7,500, citing rising ether holdings and improved industry engagement [2].

Derivatives markets have also shown strong positioning for Ethereum. The call/put ratio for ETH options climbed to 3.21x, the highest since June 2024, with $792 million spent on call premiums in a single month. Implied volatility, however, has fallen to 32%, below the one-year average of 50%, indicating compressed option pricing and subdued speculative activity. This environment has led to a reduction in option premiums, with a +25% out-of-the-money 1-year call now costing approximately 6% of the spot price, compared to 18% in late 2024 [1].

As Ethereum continues to outperform Bitcoin in relative terms, analysts are closely watching key support and resistance levels. Immediate support is expected around $3,354, with a decisive break above $4,788 potentially signaling renewed momentum toward $7,500 [2]. The broader market environment remains volatile, with Bitcoin experiencing similar consolidation patterns as investors balance profit-taking with bullish positioning. The combination of strong onchain activity, institutional inflows, and elevated derivatives exposure suggests that Ethereum’s outperformance may continue in the coming weeks, provided macroeconomic developments remain favorable.

Source: [1] VanEck Mid-August 2025 Bitcoin ChainCheck (https://www.vaneck.com/us/en/blogs/digital-assets/matthew-sigel-vaneck-mid-august-2025-bitcoin-chaincheck/) [2] Ethereum (ETH) Pulls Back to $4289 After Testing $4724 ... (https://blockchain.news/news/20250818-ethereum-eth-pulls-back-to-4289-after-testing-4724-annual) [5] Ethereum Outshining Bitcoin Again as Crucial Metric Flips Bullish (https://u.today/ethereum-outshining-bitcoin-again-as-crucial-metric-flips-bullish)