Ethereum News Today: Ethereum Surpasses Bitcoin as Investors Shift to Altcoin Optimism

Ethereum is emerging as a potential leader in the next crypto bull cycle, with network activity reaching all-time highs and short-term holders increasingly accumulating the asset. As of August 24, 2025, Ether (ETH) surpassed its November 2021 record high, reaching $4,867 on Coinbase. The surge is attributed to a dovish shift by the Federal Reserve, renewed inflows into Ethereum-based ETFs, and growing institutional adoption. Over the past month, the price of ETH has gained over 250% from its April low of $1,385, signaling a significant shift in market dynamics.

The Federal Reserve’s recent policy signals have been a key driver of the ETH price rally. During his speech at the Jackson Hole symposium, Fed Chair Jerome Powell indicated a willingness to consider a 25 basis point rate cut in September, citing stability in the labor market and the restrictive nature of current monetary policy. Such easing measures are typically favorable for risk assets like Ethereum, which have historically benefited from increased liquidity. Powell’s remarks have led to immediate price reactions, with Ethereum surging more than 7% in the hours following his speech.

Ethereum ETF inflows have also resumed after a brief period of outflows. On August 21, Ethereum ETFs attracted $287.60 million in capital, marking the first significant inflow after four consecutive outflow days. As of August 24, these funds were managing over $12.12 billion in assets, according to Farside Investors. Additionally, Ethereum’s growing adoption as a corporate treasury asset has contributed to its positive momentum. Over the past month, corporate entities have acquired approximately $1.6 billion worth of ETH, with holdings now exceeding $29.75 billion, reflecting a shift in perception from speculative token to a utility-rich reserve asset.

The rise of Ethereum has coincided with a decline in Bitcoin’s dominance within the cryptocurrency market. Bitcoin’s market share dropped below 60% for the first time since March, with Ethereum gaining a larger share of capital inflows. This trend has led to increased interest in altcoins, particularly large-cap assets like Ethereum, as investors seek higher returns amid a shifting macroeconomic landscape. Ether-focused investment products outperformed Bitcoin-focused ones in the week ending August 15, attracting $2.86 billion in inflows compared to Bitcoin’s $552 million, according to CoinShares.

Looking ahead, analysts remain optimistic about Ethereum’s trajectory. Standard Chartered has raised its year-end ETH price target to $7,500 from $4,000 and projects $25,000 by 2028. Some analysts even suggest that ETH could reach $13,000 in the coming months, driven by sustained demand outpacing supply and favorable macroeconomic conditions. However, these forecasts should be interpreted with caution, as market dynamics can shift rapidly in response to macroeconomic developments and regulatory actions.

Source: [1] 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) [2] Ethereum, Bitcoin Spike After Powell Signals Interest Rate ... (https://decrypt.co/336440/ethereum-bitcoin-jump-powell-hints-interest-rate-cut)