Ethereum News Today: Institutional Bet on Ethereum’s Code Fuels Record ETF Surge and $5K Hopes

Ethereum has surged to its highest weekly close in four years, drawing attention from both retail and institutional investors. On August 13, the price of Ether (ETH) closed the week at $4,475, surpassing the $4,000 resistance level that had persisted since 2021. This upward momentum was supported by record inflows into spot Ethereum ETFs, particularly BlackRock’s ETHA, which alone recorded $1.02 billion in inflows on August 11. BlackRock now holds over 58% of all Ethereum ETF assets, indicating strong institutional confidence in the asset [2]. The ETF-driven rally has been further amplified by corporate treasuries accumulating over $17.3 billion in ETH, accounting for 3.4% of the total supply [2].

Analysts are closely monitoring key price levels for Ethereum as it consolidates between $3,900 and $4,400. The immediate support zone lies between $4,100 and $4,000, a critical range that has transitioned from resistance to support. According to on-chain data from Glassnode, 341,000 ETH tokens were accumulated in this area, suggesting strong buyer interest [2]. On the upside, a weekly close above $4,550 could confirm a breakout into new all-time highs, with potential targets between $5,000 and $5,800 [2]. However, a breakdown below $4,150 could trigger a deeper pullback toward $3,650–$3,750, according to market analyst Demi-Defi [2]. The price’s behavior in this consolidation phase is seen as crucial for determining the next direction of the broader crypto market.

Ethereum’s strength is also being driven by its role as a foundational infrastructure for decentralized finance (DeFi) and smart contracts. Unlike Bitcoin, Ethereum’s programmable blockchain allows for the automation of financial transactions, lending, and trading without intermediaries. This has led to a surge in on-chain activity, including stablecoin transfers and layer 2 growth. In July alone, over 46.67 million transactions were recorded, with daily transaction volume reaching 1.74 million on August 5 [2]. Tom Lee, chairman of BitMine Immersion Technologies Inc., emphasized Ethereum’s potential as the intersection of Wall Street and artificial intelligence, a claim supported by the increasing adoption of Ethereum-based smart contracts in financial applications [1].

Despite Ethereum’s strong performance, Dogecoin (DOGE) has failed to secure a place among the top cryptos to buy in August. As of August 13, DOGE was trading at $0.22, down 1.49% in a day, and has lost significant momentum compared to earlier in the year. While DOGE’s price has increased by 6% in the last seven days, its performance remains underwhelming in the broader crypto market. Analysts suggest that DOGE is currently in a consolidation phase, testing demand before a potential rebound. However, if the price fails to hold above key support levels, it could drop to $0.015, according to recent forecasts [4]. In contrast to Ethereum, DOGE lacks the structural demand from institutional investors or corporate treasuries, making it a less attractive option for those seeking long-term exposure to crypto assets [4].

The broader market is also witnessing a shift in investor sentiment, with Ethereum edging out Solana (SOL) and Cardano (ADA) as a top-tier asset. While Solana has experienced a recent pullback and Cardano consolidates around $0.90, Ethereum has maintained relative strength due to whale buying and a surge in institutional futures trading. Ethereum’s dominance in trading volumes has outpaced Bitcoin for four consecutive weeks, with a $10 billion weekly advantage [5]. This growing institutional interest is further supported by Ethereum’s expanding role in DeFi and its ability to process more transactions than any other blockchain network.

Ethereum’s rally has also benefited from strategic initiatives by major players in the crypto space. For instance, corporate treasuries are locking away supply to create a more stable floor for the price, mitigating the risk of oversupply. This approach is seen as a structural fix to Ethereum’s demand problem and has been endorsed by figures like Ethereum co-founder Joe Lubin and BitMine Immersion Technologies CEO Tom Lee [1]. As Ethereum continues to solidify its position as the backbone of a programmable financial system, the focus will remain on institutional adoption, ETF inflows, and on-chain activity. Analysts are closely watching how these factors interact to determine whether Ethereum can sustain its upward trajectory and potentially break through new all-time highs.

Source:

[1] title1 (https://finance.yahoo.com/news/ethereum-big-backers-unleash-billions-130704758.html)

[2] title2 (https://cointelegraph.com/news/ethereum-sets-highest-weekly-close-in-4-years-watch-these-eth-price-levels)

[3] title3 (https://cointelegraph.com/news/eth-charts-predict-dollar3-9k-retest-then-a-100percent-rally-to-new-highs)

[4] title4 (https://www.coingecko.com/en/coins/dogecoin/eth)

[5] title5 (https://coincentral.com/market-shift-doge-ada-and-sol-lose-momentum-as-ethereum-builds-strength/)