Ethereum News Today: Ethereum Surpasses Bitcoin as Capital Flows Shift to Altseason Leadership

Bitcoin Whale Sells BTC and Invests in Ethereum [1]

Ethereum (ETH) has surged to new record highs, surpassing $4,900 for the first time on Sunday. According to data from CoinGecko and CoinMarketCap, ETH reached as high as $4,948, with the price currently hovering near $4,935 as of early Monday morning. This surge marks a significant milestone for Ethereum, breaking its previous all-time high of $4,878 set in November 2021 [2]. The price action reflects a shift in momentum from Bitcoin to Ethereum, with analysts observing that Bitcoin’s recent rallies have stalled near resistance levels while Ethereum continues to push higher.

The breakout pattern is characterized by a clean, multi-year price movement on the ETH-USD chart, with no major historical resistance levels above the 2021 high to hinder the rally. Analysts have described this as “price discovery,” where the market is determining new highs with minimal prior chart resistance, relying instead on order flow and psychological levels to guide price action [1]. This dynamic has drawn increased attention from traders and investors, many of whom are rotating capital from Bitcoin to Ethereum as the latter shows stronger follow-through and fresh high-setting.

One of the key drivers behind Ethereum’s recent strength is the declining supply of coins on centralized exchanges. As exchange reserves shrink, fewer coins are immediately available for selling, leading to upward price pressure as buyers must bid higher to secure ETH from off-exchange holders. This so-called “supply shock” dynamic has been highlighted by analysts as a catalyst for Ethereum’s accelerated price movement [1]. Additionally, the launch of U.S. spot Ethereum ETFs has seen unprecedented inflows, surpassing $1 billion in a single day, outpacing Bitcoin ETFs and signaling a shift in investor preference [2].

Ethereum’s performance has also been bolstered by favorable regulatory developments, including the U.S. Securities and Exchange Commission’s (SEC) updated guidance on staking services and the passage of the GENIUS Act, which established a regulatory framework for stablecoins—most of which operate on the Ethereum blockchain. Corporate accumulation by major Ethereum treasury firms has further supported price action, with companies like BitMine Immersion and SharpLink Gaming holding billions worth of ETH [2].

While Ethereum’s ascent continues, analysts have cautioned that price volatility remains a risk. Notably, the unusually large weekly candlestick chart indicates that weekend breakouts, often driven by thinner order books, may retrace when liquidity returns on Monday. This pattern could result in a short-term pullback toward the breakout zone before the upward trend resumes [1]. Despite these concerns, the broader narrative suggests that Ethereum is outperforming Bitcoin, with capital rotation indicating the early stages of a classic bull market rotation that historically precedes an “altseason” [3].

The market remains in a state of flux, with Bitcoin still consolidating between $102,000 and $115,000. Analysts believe that as long as the $100,000 support level holds, the bull cycle remains intact. However, the weakening dominance of Bitcoin, coupled with Ethereum’s continued strength, signals a structural shift in market leadership [3]. As the crypto market approaches the final phase of the cycle, investors are closely monitoring liquidity triggers, such as anticipated U.S. Federal Reserve rate cuts, which could provide additional upward momentum.

Source:

[1] As ETH Breaks Above USD4,900, Analyst Sums Up Crypto Market: BTC Is Exhausted, ETH Isn’t (https://www.coindesk.com/markets/2025/08/24/as-eth-breaks-above-usd4-900-analyst-sums-up-crypto-market-btc-is-exhausted-eth-isn-t)

[2] Ethereum Jumps to Record Price Move (https://finance.yahoo.com/news/ethereum-jumps-record-price-move-184709473.html)

[3] Bitcoin Cycle 2025: Analyst Says Bull Run Intact as Altseason Nears (https://cryptodnes.bg/en/bitcoin-cycle-2025-analyst-says-bull-run-intact-as-altseason-nears/)