Ethereum News Today: Ethereum Surpasses $4,214 as Net Inflows Outpace Bitcoin for First Time

Ethereum’s price has surged past $4,214, marking the highest level since December 2021, while net capital inflows into the asset have surpassed those of Bitcoin for the first time in recent memory. This shift has triggered speculation that the crypto market may be entering an altseason, a recurring phase where altcoins outperform Bitcoin in terms of momentum and capital flows. Current net capital data shows Ethereum at $0.0661 billion in inflows, compared to Bitcoin’s $0.0478 billion [1].

The outperformance is being attributed to strong institutional accumulation, with BlackRock’s on-chain Ethereum holdings rising sharply in July 2025 to exceed $5 billion, as revealed by Dune Analytics. This surge in buying activity is complemented by significant inflows into Ethereum-based ETFs, which have added liquidity and stabilized the asset during periods of high demand. On-chain data further indicates that Galaxy Digital executed multiple large ETH purchases totaling over $120 million in recent days [1].

Technical analysis from TedPillows highlights Ethereum reclaiming the $4,000 level with minimal resistance, suggesting the potential for a new all-time high. He forecasts ETH could hit $4,900 next week if Bitcoin maintains stability [1]. Meanwhile, market cycle analysis from Crypto Rover shows Ethereum entering a performance phase historically associated with large-cap rallies and broad altcoin surges [1].

Despite the optimism, analysts remain divided on the near-term trajectory. Some traders, like CryptoOrbion, have sold a portion of their ETH holdings, citing concerns that the current rally resembles previous market tops. They plan to fully exit before the end of October. In contrast, bullish traders argue that the lack of overhead resistance and the rapid pace of institutional inflows support continued gains into Q4 2025 [1].

Market sentiment appears to be moving toward the optimism-to-belief stage in the typical crypto cycle, suggesting further upside before reaching a euphoric peak. However, history shows that rapid price climbs are often followed by sharp reversals, keeping risk levels elevated. On-chain indicators suggest reduced bearish positioning in the derivatives market, with margin borrowing and funding rates for ETH futures near all-time lows [1].

As the debate unfolds, the broader market has shown signs of strength, with Ethereum trading at a price not seen since late 2021. While it remains the second-largest cryptocurrency by market capitalization, the recent surge has sparked discussions about its ability to sustain momentum in the current bull phase [1].

Source: [1] https://coinmarketcap.com/community/articles/6898ee82d2aecc707a2ad8fa/