Ethereum News Today: Institutional Bet: Ethereum Breaks Barriers, Challenges Bitcoin’s Crown

Ethereum reached a new all-time high of $4,885 on August 23, 2025, marking a significant milestone for the second-largest cryptocurrency by market capitalization. This surge came after a single-day increase of over 15%, following a pattern that many market observers see as a continuation of Ethereum’s broader 2025 rally. The price movement was catalyzed by remarks from Federal Reserve Chair Jerome Powell, who hinted at an upcoming interest rate cut, which typically signals a shift toward accommodative monetary policy and increases demand for risk assets.

Legendary trader Peter Brandt, known for his insights in the commodities markets and for accurately predicting Bitcoin's 2017 peak, described the Ethereum breakout as “Powerful.” Brandt, while historically critical of Ethereum, acknowledged the strength of the move, which saw the coin surpass its previous all-time high of $4,878 set in November 2021. Coinbase CEO Brian Armstrong also celebrated the achievement on social media, highlighting Ethereum’s growing adoption and influence in the crypto space.

Institutional interest in Ethereum has been on the rise, with major Wall Street firms such as Goldman Sachs, Millennium Management, and Jane Street collectively investing over $900 million in Ethereum exposure during Q2 2025. These investments came through ETFs such as ETHA, which have seen significant inflows in recent weeks. In fact, U.S. spot Ethereum ETFs experienced a $600 million inflow in two consecutive days, reversing a four-day outflow streak. This pattern of institutional accumulation is seen as a bullish indicator, reinforcing the idea that Ethereum is being increasingly treated as a reserve asset by large institutional investors.

Ethereum’s market dynamics have also changed significantly in recent months. Exchange-held balances of ETH have dropped to under 13 million, the lowest in years, suggesting that a growing portion of the circulating supply is being held off exchanges by investors. This reduction in liquidity can reduce selling pressure, potentially supporting further price gains. The shrinking supply available for trading on exchanges aligns with historical trends observed during Ethereum’s prior price surges, such as the 2020–2021 rally, when similar supply reductions coincided with sharp price increases.

The surge in Ethereum has also shifted the broader crypto market landscape, particularly in relation to Bitcoin. For the first time in four months, Bitcoin’s dominance—its share of the total crypto market capitalization—fell below 60%. This shift indicates a growing appetite for alternative cryptocurrencies, especially among institutional investors. Ethereum’s rapid growth has been supported by factors such as the approval of spot Ethereum ETFs in July 2024, the expansion of Ethereum’s treasury adoption by corporations, and the development of Layer 2 solutions that improve scalability and user experience. These developments have contributed to Ethereum being viewed as a foundational infrastructure for future financial systems, particularly with its smart contract and DeFi ecosystems.

Looking ahead, several analysts and institutional players have expressed optimism about Ethereum’s potential. Standard Chartered has raised its year-end price target for Ethereum to $7,500, with some analysts suggesting the coin could reach as high as $25,000 by 2028. Analysts at Hyblock also note that current demand for Ethereum is outpacing supply, supported by ETF inflows, corporate treasuries, and ecosystem growth. Meanwhile, Peter Brandt has pointed to historical patterns suggesting the current crypto bull market may peak around mid-September, with Bitcoin potentially reaching between $125,000 and $145,000 if the pattern holds. However, Ethereum’s strong institutional tailwinds and ecosystem developments suggest it could continue to challenge Bitcoin for market leadership in the near future.

Source:

[1] "Powerful: Legendary Trader Peter Brandt on New Ethereum ATH" (https://u.today/powerful-legendary-trader-peter-brandt-on-new-ethereum-ath)

[2] "Legendary Trader Peter Brandt Just Mapped Bitcoin's Next..." (https://finance.yahoo.com/news/legendary-trader-peter-brandt-just-010107426.html)

[3] "Ethereum Market Cap Dips, But Institutional Buying Hints at..." (https://www.bitget.com/news/detail/12560604920895)

[4] "Peter Brandt Reacts as Ethereum Hits New All-Time High..." (https://coinpedia.org/news/peter-brandt-reacts-as-ethereum-hits-new-all-time-high-above-4878/)

[5] "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)

[6] "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)

[7] "Ethereum Hits All-Time High Price After Nearly 4 Years" (https://finance.yahoo.com/news/ethereum-hits-time-high-price-213405633.html)