Ethereum News Today: Institutional Bets Clash with Ethereum's Stalled Breakout

Ethereum’s recent price gains have shown signs of slowing as key technical and market barriers continue to hold firm, raising the possibility of a further pullback in the near term. Following a notable 40% increase over the past month, Ethereum (ETH) has retreated to around $4,220, struggling to break through resistance levels near $4,380 and $4,460. This stagnation comes despite renewed institutional interest and record inflows into Ethereum-based exchange-traded funds (ETFs.

According to analysis from Mitrade, Ethereum’s price has faced resistance near the $4,355 mark, where a bearish trend line and the 100-hourly simple moving average are aligning to cap upward movement. The price remains below $4,350 and has seen bearish momentum following a breakdown below $4,250, pushing it toward support levels near $4,220 and $4,200. Should ETH fail to push through the $4,380 resistance, it could face renewed downward pressure, with potential support levels at $4,120 and $4,050 looming in the near term. The 100-hourly moving average and the 61.8% Fibonacci retracement level are expected to play a critical role in shaping Ethereum’s near-term direction [4].

On the institutional front, Ethereum has drawn significant attention, with companies like Bitmine Immersion Technologies Inc acquiring a substantial ETH treasury. The firm, led by Tom Lee, has amassed 1.174 million ETH, valued at approximately $5.26 billion, making it the third-largest corporate crypto treasury globally. Lee has positioned Ethereum as a superior asset to Bitcoin, emphasizing its utility through smart contracts, staking rewards, and scalability. BitMine’s pivot to Ethereum has been highly successful, with the company’s stock rising over 725% year-to-date [1].

JPMorgan has also issued a bullish outlook for Ethereum, forecasting “meteoric” growth as it gains traction in the institutional space. Ethereum’s role in the stablecoin ecosystem further strengthens its appeal, with $138 billion in stablecoins issued as ERC-20 tokens on its blockchain, representing 51% of the global stablecoin market. The firm anticipates the stablecoin market to expand to $750 billion by the end of 2026, with Ethereum poised to benefit significantly from this growth [2].

Despite these optimistic forecasts, market participants are already seeing early signs of profit-taking, which could lead to a temporary consolidation or pullback. The ETH/BTC ratio has surpassed its 365-day moving average, historically a signal of extended Ethereum outperformance. However, rising exchange inflows and a growing MVRV (Market Value to Realized Value) ratio indicate that traders are beginning to take profits after a record rally. CryptoQuant has warned that such levels have historically preceded corrections in ETH’s relative strength [5].

In the options market, increased call overwriting at the $7,000–$8,000 strikes for December suggests that some traders are capping upside expectations. While structural drivers like ETF demand and favorable on-chain metrics remain intact, market makers and trading desks are cautioning that stretched positioning and macroeconomic volatility—such as uneven inflation data—could challenge Ethereum’s momentum in the coming weeks.

Ethereum’s technical outlook remains mixed. While a bullish case exists for a rally toward $4,750–$8,000, supported by a falling wedge pattern and a strong 20-day exponential moving average, the risk of a breakdown remains. A close below $4,140 could invalidate the pattern and trigger a deeper correction. The market will be closely watching for confirmation of a sustained recovery or a continuation of the recent bearish trend [3].

Source: [1] Tom Lee's $5 Billion Ethereum Bet Puts Bitcoin Maximalists ... (https://finance.yahoo.com/news/tom-lees-5-billion-ethereum-114604680.html) [2] JPMorgan Says Ethereum Is Poised for 'Meteoric' Growth ... (https://finance.yahoo.com/news/jpmorgan-says-ethereum-poised-meteoric-201517239.html) [3] Ethereum whale opens $16.3M long as ETH price eyes ... (https://cointelegraph.com/news/ethereum-whale-opens-16-3m-long-as-eth-price-eyes-bounce) [4] Ethereum Price Gains Fade as Key Barriers Hold Firm ... (https://www.mitrade.com/insights/news/live-news/article-3-1056678-20250821) [5] Asia Morning Briefing: ETH's Bullrun Meets Early Signs of ... (https://www.coindesk.com/markets/2025/08/15/asia-morning-briefing-eth-s-bullrun-meets-early-signs-of-selling-pressure)