Ethereum News Today: Institutional Confidence Drives Ethereum Into the "Belief Zone"

Ethereum (ETH) has exhibited a complex price trajectory amid growing institutional accumulation and evolving market dynamics. After reaching a record high above $5,000 on Sunday, the token retreated to $4,460, marking an 8% decline over the following 24 hours. On-chain data suggests the market is in a "belief" phase, with key metrics like the long-term holder net unrealized profit/loss (NUPL) indicator and the market value to realized value (MVRV) ratio supporting a bullish outlook. The LTH NUPL has entered the "belief-denial" zone, historically associated with upcoming price rallies, while the MVRV ratio of 2.08—substantially lower than past peaks—indicates undervaluation and potential for further appreciation [1].

Meanwhile, institutional demand for Ethereum continues to gain momentum. BitMine (BMNR) and several Bitcoin whales have significantly increased their Ethereum holdings. BitMine alone added over 190,500 ETH in a single week, bringing its total holdings to 1.7 million ETH with a combined crypto and cash value of $8.8 billion. This accumulation strategy has been supported by major institutional investors such as ARK’s Cathie Wood and Founders Fund, reinforcing confidence in Ethereum’s long-term potential [2]. Notably, 70 public companies now collectively hold over 4 million ETH, signaling a broader shift in institutional investment toward digital assets and potentially reducing freely tradable supply [3].

Ethereum's price action has also validated several technical patterns. A megaphone pattern on the weekly chart suggests a potential price target of $10,000, while a rounded bottom pattern on the daily chart indicates a retest of the $4,100 neckline before potentially surging to $12,130. The ETH/USD pair is currently testing key support levels, including the $4,500 threshold and the 14-day exponential moving average (EMA). Analysts have highlighted that a sustained close above $5,000 would confirm a bullish pennant pattern, potentially pushing the price toward $6,000 [1]. However, the Relative Strength Index (RSI) and Stochastic Oscillator have shown weakening momentum, suggesting caution for short-term traders [2].

The institutional Ethereum holding structure appears to be more diversified compared to Bitcoin, according to Nick Tomaino of 1confirmation. This decentralized ownership model contrasts with Bitcoin's concentration in a few entities and may contribute to Ethereum’s broader acceptance by Wall Street and the public. The absence of a single dominant holder for Ethereum suggests a more resilient and less centralized institutional landscape, potentially favoring long-term growth [5].

Market participants are also monitoring the potential approval of Ethereum staking ETFs, which could further enhance demand and provide additional liquidity. The ongoing accumulation by both institutional investors and whale-level holders reflects a strategic shift in the crypto bull cycle, with Ethereum increasingly viewed as a core asset for institutional portfolios. As Ethereum continues to undergo network upgrades, these developments may amplify its role in decentralized finance (DeFi) and AI-driven blockchain applications, offering diverse opportunities for investors and traders [3].

Source: [1] Ether Price Enters 'Belief Zone' Following $5K All-Time Highs (https://cointelegraph.com/news/20k-eth-price-in-play-ethereum-belief-zone) [2] Ethereum Price Forecast: ETH plunges 8% amid strong accumulation from BitMine and Bitcoin whales (https://www.fxstreet.com/cryptocurrencies/news/ethereum-price-forecast-eth-plunges-8-amid-strong-accumulation-from-bitmine-and-bitcoin-whales-202508252040) [3] 70 Public Companies Now Hold Over 4,000,000 ETH — Institutional Demand Signal and Liquidity Watch for Ethereum (ETH) in 2025 (https://blockchain.news/flashnews/70-public-companies-now-hold-over-4-000-000-eth-institutional-demand-signal-and-liquidity-watch-for-ethereum-eth-in-2025) [4] 190,500 ETH Bought in One Week: Inside BitMine's Shocking Ethereum Strategy (https://finance.yahoo.com/news/190-500-eth-bought-one-212638906.html) [5] The ETH institutional holding structure is healthier than that of BTC (https://www.chaincatcher.com/en/article/2200076)