Ethereum News Today: Ethereum Surpasses Bitcoin as Institutional Demand and Regulation Drive New Bull Run

Ethereum, having recently set a record high above $4,900, now appears to be facing early signs of a short-term correction. The cryptocurrency, which reached an intraday peak of $4,946.90 on Sunday, August 24, 2025, has seen a shift in market sentiment. Analysts have noted a slowdown in Bitcoin’s upward momentum while Ethereum demand continues to rise amid declining exchange reserves, a trend that suggests reduced immediate selling pressure. This divergence in performance has led some to argue that Ethereum has not yet reached the point of exhaustion, unlike Bitcoin, which has shown weaker follow-through in its rally attempts [1].

The surge in ETH prices was triggered in part by renewed optimism following comments from Federal Reserve Chair Jerome Powell, who hinted at the possibility of interest rate cuts. This sparked a rapid 15% gain on Friday, pushing Ethereum past its previous record of $4,867, set in November 2021. The rally was further supported by strong inflows into U.S. spot Ethereum ETFs, which attracted over $1 billion in a single day for the first time since their launch. These funds have increasingly outperformed Bitcoin ETFs in recent weeks, reversing the earlier dominance of BTC [2].

Corporate accumulation of ETH has also played a key role in the recent price surge. Publicly traded Ethereum treasury firms such as BitMine Immersion and SharpLink Gaming have amassed significant holdings, with BitMine Immersion accumulating over $7 billion in ETH and SharpLink Gaming collecting more than $3.6 billion. This institutional accumulation has further reduced the circulating supply, potentially amplifying price movements as demand continues to outpace available liquidity [2].

Regulatory developments have provided additional tailwinds for Ethereum. The U.S. Securities and Exchange Commission (SEC) has issued clearer guidance on staking services, allowing liquid staking providers to distribute rewards without prior regulatory registration. This marks a departure from the more restrictive policies of the previous administration and has been interpreted as a positive signal for the broader crypto market. Additionally, the passage of the GENIUS Act has laid the groundwork for a U.S. regulatory framework for stablecoins, which largely operate on the Ethereum blockchain [2].

Despite the bullish momentum, some analysts caution that the recent price moves may face a near-term pullback. Traders have observed that weekend breakouts often retrace when liquidity returns to full levels early in the week. This pattern suggests that a temporary dip toward the $4,300–$4,400 range could occur as the market tests the sustainability of the recent highs. While such a pullback would not necessarily negate the longer-term bullish trend visible on multi-year charts, it may serve as a retesting of support levels before the next upward move [1].

Looking ahead, the evolving regulatory landscape and macroeconomic factors will remain critical to Ethereum’s price trajectory. With both institutional and retail demand showing resilience and Ethereum-based products gaining broader acceptance, the cryptocurrency appears well-positioned for continued growth, albeit with the potential for short-term volatility in the coming weeks [1].

Source:

[1] As ETH Breaks Above $4,900, 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 in Latest Move (https://finance.yahoo.com/news/ethereum-jumps-record-price-move-184709473.html)