Ethereum News Today: Ethereum Surpasses 2021 Peak as Institutional Bet Grows

Ethereum (ETH) has surged past its 2021 all-time high, reaching a new record of nearly $4,885 on August 23, 2025, signaling renewed bullish momentum in the cryptocurrency market. The price surge comes amid a broader market rally sparked by Federal Reserve Chair Jerome Powell’s dovish remarks at the Jackson Hole Economic Symposium. Powell’s comments, which hinted at potential interest rate cuts as early as September, have driven risk-on sentiment and triggered a 12% rally in ETH within a 24-hour period.

Ethereum’s recent performance has outpaced Bitcoin (BTC), which has remained relatively stagnant in the same price range it occupied a month ago. While BTC consolidates, ETH has advanced significantly, breaking through a key resistance level near $4,800. This has intensified speculation that Ethereum could eventually surpass its prior all-time high of $4,878 set in November 2021 and potentially reach $5,000. The price movement is supported by strong on-chain metrics, including a net inflow of $516.4 million into Ethereum over the past seven days, which far outpaces inflows into other blockchains like Polygon. This inflow highlights growing institutional and retail confidence in the platform.

The ETH/BTC ratio, a key indicator of Ethereum’s relative strength, has also climbed to its highest level of 2025, reaching 0.0368. This increase reflects a shift in market participation, with Ethereum trading nearly three times the volume of Bitcoin on a weekly basis. According to EgyHash, a contributor to CryptoQuant’s QuickTake, this signals a structural shift in investor sentiment, particularly as institutional adoption of Ethereum continues to grow. Investment funds now hold approximately 6.1 million ETH, a 68% increase compared to December 2024 and a 75% rise from April 2025.

The growing institutional presence is further reinforced by the approval of Ethereum-based exchange-traded funds (ETFs), including BlackRock’s ETHA, which has attracted over $20 billion in assets under management. Analysts suggest that the introduction of staking capabilities in ETH-based ETFs could drive further inflows, especially as U.S. regulatory clarity—such as the proposed CLARITY Act—seeks to formally classify Ethereum as a digital commodity. This development is expected to enhance institutional exposure and liquidity in the Ethereum ecosystem.

Ethereum’s recent price action also reflects broader macroeconomic trends, with the U.S. Federal Reserve’s policy stance playing a pivotal role. The shift toward rate cuts has led to a rotation of capital into risk assets, with Ethereum benefiting from increased demand for high-growth digital assets. In addition to macroeconomic factors, Ethereum’s technical fundamentals remain robust. The token has closed the week near $4,876, surpassing its 2021 peak by nearly $90. The price is trading above key moving averages, including the 50-week, 100-week, and 200-week averages, reinforcing the bullish trend. Open interest and derivatives activity also indicate strong speculative positioning, though analysts caution that further gains depend on sustained adoption and on-chain accumulation.

Looking ahead, Ethereum’s ability to sustain its current trajectory will depend on both macroeconomic conditions and its role in the broader crypto ecosystem. The platform’s dominance in decentralized finance (DeFi) and its recent upgrades, such as the Pectra protocol, have enhanced scalability and staking efficiency. These improvements, combined with regulatory progress and institutional adoption, position Ethereum to continue its upward trajectory. However, near-term volatility around resistance levels is likely, and the success of Ethereum’s next phase will hinge on its capacity to maintain market leadership in an increasingly competitive landscape.

Source: [1] ETHBTC - Ethereum / Bitcoin Cryptocurrency Price (https://www.barchart.com/forex/quotes/%5EETHBTC) [2] ETH/BTC Ratio Climbs to Yearly Peak Amid Market Shift (https://www.xt.com/en/blog/post/ethereum-vs-bitcoin-eth-btc-ratio-climbs-to-yearly-peak-amid-market-shift) [3] Ethereum Chain Dominates With $516M Net Inflows In 7 ... (https://www.mitrade.com/insights/news/live-news/article-3-1063605-20250823) [4] Ethereum Nears $4868 ATH as Fed Policy Sparks 12% ... (https://bravenewcoin.com/insights/ethereum-eth-price-prediction-ethereum-nears-4868-ath-as-fed-policy-sparks-12-rally-is-5000-within-reach) [5] ETH to BTC: Ethereum Price in Bitcoin (https://www.coingecko.com/en/coins/ethereum/btc) [6] ethereum, eth, ether currency price (https://www.coinbase.com/price/ethereum) [7] Ethereum hits fresh all-time high amid wider market rally ... (https://www.theblock.co/post/366657/shell-dnp-ethereum-hits-new-all-time-high-price-as-eth-crosses-4900-for-the-first-time-ever)