Ethereum News Today: Institutional Buying Drives Ethereum Higher as On-Chain Activity Hits Yearly Highs

Institutional buyers continue to fuel Ethereum’s long-term rally, with increased accumulation reinforcing market optimism. As of mid-August 2025, major institutional players like SharpLink Gaming and BitMine Immersion Technologies have been steadily adding large volumes of ETH to their holdings, effectively reducing exchange reserves and alleviating sell pressure [2]. This trend reflects a broader shift toward strategic, long-term positioning rather than speculative trading, underscoring confidence in Ethereum’s future potential.

Ethereum’s on-chain activity has also reached yearly highs, with 674,000 active addresses recorded and continuous ETH burn via EIP-1559 contributing to a tightening supply environment [9]. These fundamentals, combined with strong network engagement, are strengthening Ethereum’s appeal to institutional investors. Additionally, spot ETFs have shown heightened demand, purchasing seven times more ETH compared to earlier periods, further amplifying institutional interest [3].

Despite a temporary price dip to $3,499.86 on August 4, 2025, Ethereum has drawn significant buying interest from institutional players. A reported $2.5 billion in institutional capital flowed into the asset during the correction [6], signaling strong commitment at lower price levels. Similarly, Ethereum whales have acquired $300 million worth of ETH, adding to the narrative of accumulation and long-term positioning [2].

The broader crypto market has also shown signs of momentum, with Bitcoin reaching $114,000 and Ethereum approaching $3,600, pushing the total crypto market cap to $3.6 trillion [4]. While Bitcoin’s dominance has historically limited altcoin gains, Ethereum has demonstrated a degree of divergence in performance, particularly in its price action relative to Bitcoin and the overall market [5]. Analysts attribute this to growing adoption and institutional support, which may further reinforce Ethereum’s upward trajectory.

July 2025 marked a significant milestone in institutional crypto adoption, with U.S. spot ETFs experiencing record inflows of $12.8 billion, driven primarily by Ethereum and Bitcoin ETFs [8]. This data underscores the increasing role of regulated investment vehicles in shaping crypto market dynamics. As Ethereum enters a phase of renewed momentum, the alignment of institutional demand, strong on-chain fundamentals, and favorable market structure suggests that the long-term rally remains well supported.

Source:

[1] Bitcoin, Ethereum & XRP Price Rally as Crypto Market Cap Hits 3.6T (https://coinpedia.org/news/bitcoin-ethereum-xrp-price-rally-as-crypto-market-cap-hits-3-6t/)

[2] Ethereum Whales Acquire $300M in ETH, Signaling Long-Term Confidence (https://www.ainvest.com/news/ethereum-whales-acquire-300m-eth-signaling-long-term-confidence-market-fluctuations-2508/)

[3] Ethereum Price Prediction: ETH Price in 2025, 2026, 2027 (https://coindcx.com/blog/price-predictions/ethereum-price-weekly/)

[4] Bitcoin Tests Support Before Aiming Higher (https://sg.finance.yahoo.com/news/bitcoin-tests-support-aiming-higher-111500683.html)

[5] Ethereum Season Is Here | How Far Can ETH Go? | Ben Cowen (https://www.bankless.com/podcast/ethereum-season-is-here-how-far-can-eth-go-ben-cowen)

[6] Ethereum Price Pulls Back After Rally, But $2.5B In Institutional Inflows Has Whales Buying the Dip Big (https://partner.cryptopolitan.com/ethereum-price-pulls-back-after-rally-but-2-5b-in-institutional-inflows-has-whales-buying-the-dip-big/)

[9] ETH Supply Tightens as On-Chain Activity Hits Yearly Highs (https://cryptoadventure.com/eth-supply-tightens-as-on-chain-activity-hits-yearly-highs/)

[8] July 2025 Crypto ETF Inflows Hit Historic High: Bitcoin & Ethereum ETFs Lead (https://www.ainvest.com/news/july-2025-crypto-etf-inflows-hit-historic-high-bitcoin-ethereum-etfs-lead-12-8-billion-surge-2508/)