Ethereum News Today: Ethereum's Surge Rewrites Rules as Institutional Buyers Take Control

Ethereum (ETH) has reached a new all-time high, breaking through its 2021 record of $4,866.01. The surge in ETH came after U.S. Federal Reserve Chair Jerome Powell’s Jackson Hole speech, where he hinted at the potential for a September interest rate cut. This dovish signal prompted a significant shift in investor sentiment, with Ethereum rising 15% to hit $4,885.00 on Friday. The price action reflects broader market optimism, as traders anticipate looser monetary policy and a favorable environment for risk assets. In the same period, Bitcoin (BTC) also rose by 4%, reaching $117,008.29, while the total crypto market cap climbed to over $4.1 trillion.

The ETH price rebound is supported by robust on-chain metrics and growing institutional adoption. Ether balances on exchanges have dropped to nine-year lows, reaching 14.9 million ETH — the lowest since July 2016. This decline in circulating supply suggests a tightening of available ETH, which, coupled with strong buyer demand, could drive prices further upward. Analysts have noted that the shrinking exchange supply is a bullish sign, potentially signaling an imminent price rally. Additionally, spot Ethereum ETFs have seen a resurgence in inflows, with $287.6 million entering these funds on August 21, breaking a four-day outflow streak. Month-to-date, Ethereum ETFs have attracted $2.55 billion in net inflows, reinforcing the growing institutional interest in the asset.

Corporate Ethereum treasury buying has also gained momentum. Over the past month, companies have acquired approximately $1.6 billion worth of ETH, with holdings now totaling $29.75 billion. Prominent firms like BitMine, SharpLink, and GameSquare have been active in these acquisitions, treating ETH as a strategic reserve asset. This trend is reshaping the perception of Ether from a speculative token to a utility-rich asset with increasing institutional credibility. The growing adoption by publicly traded companies is further evidenced by the fact that these entities now hold about 2.3% of the total ETH supply.

Market analysts and industry figures are optimistic about Ethereum’s trajectory. Standard Chartered has raised its year-end ETH price target to $7,500 from $4,000, with a long-term target of $25,000 by 2028. Arthur Hayes, Chief Investment Officer at Maelstrom, has gone even further, suggesting ETH could reach $10,000 before the end of the current cycle. This bullish sentiment is supported by technical indicators, including a confirmed bull flag pattern on the daily chart, which projects a potential price target of $6,150. The relative strength index is also in a positive territory, indicating continued upside momentum. On the monthly chart, a golden cross in the MACD has been interpreted by some as a sign of a potential $10,000 price level.

The ETH rally has also coincided with a notable shift in market dynamics within the crypto space. Bitcoin’s market dominance has declined to below 60% for the first time in four months, reflecting a broader rotation into altcoins, particularly Ethereum. This shift is attributed to the increased institutional demand for Ethereum-based products and the growing utility of the blockchain in facilitating stablecoins and decentralized finance (DeFi) applications. Ethereum now accounts for over half of all blockchain fees related to stablecoins, further solidifying its role as a foundational layer for the evolving Web3 ecosystem. Analysts suggest that this structural advantage positions Ethereum to outperform in a continued “altseason.”

The recent price action underscores the intersection of macroeconomic factors and institutional adoption in driving Ethereum’s performance. With the Federal Reserve signaling a dovish policy stance and corporate demand for ETH continuing to rise, the outlook for the second-largest cryptocurrency appears increasingly bullish. While price targets from analysts vary, the consensus is that Ethereum is well-positioned to achieve significant gains in the near term. However, market conditions remain dynamic, and investors are advised to monitor developments in both the macroeconomic landscape and on-chain activity for potential shifts in momentum.

Source: [1] Ethereum Is Now More Valuable Than Palantir. Which Is a ... (https://finance.yahoo.com/news/ethereum-now-more-valuable-palantir-204147692.html) [2] ETH Soars To New All-time High On Fed Rate Cut Signal (https://cointelegraph.com/news/eth-hits-new-highs-as-fed-turns-dovish-ether-etf-inflows-resume) [3] Arthur Hayes says Ethereum will go as high ... - Yahoo Finance (https://finance.yahoo.com/news/arthur-hayes-says-ethereum-high-150408041.html) [4] Ethereum's Price Explodes to a New All-Time High (https://cryptopotato.com/ethereums-price-explodes-to-a-new-all-time-high/) [5] Ethereum brushes record high after Fed chair says ... (https://fortune.com/crypto/2025/08/22/ethereum-price-today-bitcoin-jerome-powell-fed-chair-jackson-hole/) [6] ETH 'god candle' emerges amid Fed rate cut hopes (https://cointelegraph.com/news/eth-god-candle-emerges-amid-fed-rate-cut-hopes-is-dollar6k-ether-next) [7] Ether notches first new record since 2021 after Powell ... (https://www.cnbc.com/2025/08/22/crypto-market-today.html)