Ethereum News Today: Institutional Buyers Stake $7.5B Bet on Ethereum's Recovery

Fundstrat Global Advisors managing partner Tom Lee has predicted that Ethereum (ETH) will bottom out in the coming hours, with a potential rally toward $5,500 soon afterward. This outlook is supported by Mark Newton, Fundstrat’s global head of technical strategy, who has also expressed confidence in the cryptocurrency’s near-term trajectory. According to Newton, Ethereum should find a floor near $4,300 within the next 12 hours and begin a recovery phase toward $5,100 or even $5,450, depending on the strength of the momentum [1].

Ethereum’s recent price action has been volatile, dipping as low as $4,341 early Monday before stabilizing above $4,550. The token has fallen roughly 8% from its all-time high of $4,946 recorded on Sunday, as the broader crypto market faced a correction led by Bitcoin’s decline to a seven-week low [1]. Despite this pullback, Fundstrat’s team argues that the risk/reward profile for Ethereum remains attractive, with Newton emphasizing that a break below $4,067 would invalidate the bullish case [3].

Meanwhile, Ethereum’s institutional appeal has only grown. Fundstrat’s Ethereum-focused treasury firm, BitMine Immersion Technologies, has been aggressively accumulating the token. On Tuesday, it added 4,871 ETH valued at $21.3 million, bringing its total holdings to 1.72 million ETH, or approximately $7.5 billion at current prices [2]. BitMine has also increased its cash and crypto holdings by $2.2 billion in the past week, pushing its net asset value per share to $39.84 from $22.84 in late July [2]. The firm now holds 40% of the 4.3 million ETH controlled by corporate treasuries, making it the second-largest entity in Ethereum treasury accumulation [3].

Ethereum’s institutional traction is not limited to treasury activity. ETFs have also played a role in the token’s resurgence, with Ethereum-based funds attracting over $12.1 billion in assets under management in 2025, far outpacing their Bitcoin counterparts. BlackRock’s iShares Ethereum Trust (ETHA) alone recorded nearly $300 million in inflows in August [5]. Public companies now hold 3.4% of Ethereum’s total supply, with more than 3.5 million ETH staked in corporate treasuries. This contrasts with Bitcoin, which remains a non-yielding asset [5].

Ethereum’s fundamentals also support its long-term value proposition. The blockchain continues to see adoption in real-world asset tokenization, powering 53% of such initiatives. Regulatory clarity, including the reclassification of Ethereum as a utility token under the SEC and Europe’s MiCA framework, has further supported its growth [5]. Analysts at Standard Chartered and other firms have forecasted ETH could reach $7,500 by year-end 2025, with long-term price targets extending to $12,000–$18,000 as adoption accelerates [5].

Despite the bullish outlook, not all analysts agree on Ethereum’s immediate trajectory. TradeNation Senior Market Analyst David Morrison and eToro’s Simon Peters have expressed caution, noting technical indicators suggest a period of consolidation or further correction before appreciable gains can occur [1]. However, the growing institutional participation and Ethereum’s deflationary mechanics—reducing supply by 0.1% quarter-over-quarter—continue to support a strong foundation for the token [5].

Source: [1] Fundstrat's Tom Lee Predicts Ethereum Bottom and Rally ... (https://finance.yahoo.com/news/fundstrats-lee-predicts-ethereum-bottom-195031823.html) [2] Tom Lee Calls Ether Bottom As BitMine Buys The Dip (https://cointelegraph.com/news/tom-lee-eth-will-bottom-within-hours-bitmine-buys-more) [3] Tom Lee's colleague says Ethereum bottom likely in next ... (https://cryptobriefing.com/ethereum-bottom-prediction-risk-reward/) [4] Ethereum's $127bn DeFi ecosystem is maturing (https://finance.yahoo.com/news/ethereum-127bn-defi-ecosystem-maturing-145604530.html) [5] ETH Rallied 3900% Last Cycle: With Institutional Demand ... (https://www.mitrade.com/insights/news/live-news/article-3-1068058-20250826)