Ethereum News Today: Institutional Buyers Steer Crypto Through Volatile Macro Crossroads

Bitcoin, the world's largest cryptocurrency by market capitalization, has seen a pullback from recent record highs as macroeconomic concerns and profit-taking have triggered significant volatility in the market. As of the latest data, the price of Bitcoin was trading at approximately $115,800, down nearly 6% from its all-time high of $124,128 reached earlier in the week. The decline followed a sharp sell-off driven by forced liquidations of over $500 million in long positions, with more than $124 million attributed to Bitcoin alone and $184 million to Ethereum [1]. The broader crypto market, as measured by the CoinDesk 20 index, also dipped by 1.2%, indicating a broad-based correction [1].

Ethereum, the second-largest cryptocurrency, also saw a significant drop in value, trading at around $4,350 following a near-record high of $4,900 last week. Ethereum experienced a 2.5% decline, with the market consolidating after a surge fueled by record institutional inflows and corporate treasury activity. Analysts attribute the pullback to a combination of profit-taking and reduced bullish momentum as traders weighed upcoming macroeconomic catalysts. According to Santiment, Ethereum’s price action reflects a broader trend of deleveraging after last week’s peak, with traders adopting a cautious stance ahead of the Federal Reserve’s upcoming policy decisions [2].

The broader market environment has played a significant role in the recent correction. Heightened expectations for a Federal Reserve rate cut in September were tempered by a hotter-than-expected inflation report, which weakened bullish sentiment. This development has shifted investor focus back to macroeconomic concerns, reducing the attention on institutional and corporate adoption of digital assets. However, the market appears to be stabilizing, with analysts suggesting that the pullbacks are part of a healthy correction rather than a sign of a broader crisis. In particular, spot ETF inflows for both Bitcoin and Ethereum have provided a buffer of support, with Ethereum ETFs recording their 14th consecutive week of inflows and reaching a record $2.9 billion for the week [1].

Looking ahead, investors are closely monitoring the Federal Reserve’s annual economic symposium in Jackson Hole, Wyoming, which is expected to provide key insights into the central bank’s future policy trajectory. According to the CME FedWatch Tool, 83.6% of market participants anticipate a long-awaited rate cut on September 17. If Fed Chair Jerome Powell adopts a "wait-and-see" approach, Bitcoin may continue to consolidate within the $115,000–$120,000 range, with a breakdown potentially exposing $112,000 as a critical support level [1]. On the other hand, a sustained bullish reaction above $120,000 could set the stage for another test of recent resistance levels.

Ethereum, meanwhile, faces key liquidity zones between $3,900 and $4,400, with analysts suggesting that a retest near $3,900 could flush out early long positions and fuel a stronger recovery. Institutional demand remains strong, with record inflows into US-listed Ethereum ETFs reaching nearly 649,000 ETH in a single week [4]. This sustained institutional participation is seen as a critical factor in Ethereum’s long-term bullish outlook, particularly as its programmable blockchain continues to attract corporate and institutional adoption. Market analysts have also highlighted Ethereum’s potential as a foundational component of future financial systems, with advocates such as Tom Lee positioning it as a convergence point for Wall Street and AI [5].

Despite the short-term volatility, both Bitcoin and Ethereum remain in a broader bullish trend. Bitcoin has seen a year-to-date increase of 23% due to expectations of rate cuts and corporate treasury purchases, while Ethereum has maintained a 15% gain for the month. While the current correction represents a natural pause in the rally, the fundamental drivers—ETF inflows, institutional adoption, and macroeconomic tailwinds—suggest that both assets are well-positioned for future growth [1].

Source:

[1] crypto-market-today (https://www.cnbc.com/2025/08/18/crypto-market-today.html)

[2] Bitcoin Price Danger Zone (https://cointelegraph.com/news/bitcoin-price-danger-zone-consolidation-profit-takers-analysts)

[3] Bitcoin, Ethereum Slip as Crypto Markets Pull Back After Hitting (https://finance.yahoo.com/news/bitcoin-ethereum-slip-as-crypto-markets-pull-back-after-hitting-2025-highs-155818704.html)

[4] ETH charts predict $3.9K retest, then a 100% rally to new (https://cointelegraph.com/news/eth-charts-predict-dollar3-9k-retest-then-a-100percent-rally-to-new-highs)

[5] Ethereum's Big Backers Unleash Billions to Push Into Wall Street (https://finance.yahoo.com/news/ethereum-big-backers-unleash-billions-130704758.html)