Ethereum News Today: Institutional Gold Rush Fuels Ethereum's Challenge to Bitcoin's Crown

Ethereum’s price has continued its ascent, outperforming Bitcoin in recent trading sessions amid growing institutional interest and a shift in whale positioning. Ether (ETH) surged past $4,800 on Friday, briefly surpassing its 2021 all-time high, while Bitcoin (BTC) traded at $113,000, marking a 4% gain. The price movement was attributed to Federal Reserve Chair Jerome Powell’s dovish comments during the Jackson Hole Symposium, which suggested a rate cut could arrive in September. Additionally, Ethereum’s rise was supported by increased demand from institutional players, including digital asset treasuries and exchange-traded funds (ETFs), which collectively contributed to a nearly 15% jump in ETH’s price in a single day [1].

Arthur Hayes, co-founder of BitMEX, has reiterated his bullish stance on Ethereum, raising his price target to $10,000 or even $20,000 by the end of the current cycle. Hayes’ rationale centers on the expectation of aggressive money printing by the U.S. government under President Donald Trump’s administration, which could lead to expanded monetary stimulus. Hayes emphasized the growing role of digital asset treasuries in Ethereum’s price trajectory, noting that firms such as BitMine and SharpLink Gaming, which hold over $10 billion in ETH, are fueling institutional interest [1]. These entities are not only hoarding the cryptocurrency but also signaling confidence in its long-term value proposition.

The surge in Ethereum’s price has led to significant market activity, including substantial liquidations. Data indicates that nearly $388 million in ETH-related liquidations occurred in the past 24 hours, with one trader experiencing a $10 million loss on OKX. The liquidations highlight the increasing leverage in the market and the volatility associated with crypto trading. While the sharp moves wiped out over 183,000 traders, analysts suggest that these forced exits could pave the way for a more stable upward trend. “A flush of long liquidations can reset the market for a cleaner bounce,” noted one market observer [2].

Ethereum’s institutional adoption has further accelerated, with U.S. regulatory developments playing a pivotal role. The Genius Act, which allows traditional financial institutions to issue stablecoins, has contributed to the growing demand for Ethereum as a blockchain infrastructure provider. Over $143 billion in stablecoins are now issued on Ethereum, representing nearly half of the total stablecoin market. Additionally, the Trump administration’s recent executive order permitting retirement funds to invest in digital assets is expected to unlock additional capital inflows into Ethereum and other cryptocurrencies [3].

Whale activity also suggests a potential rotation from Bitcoin to Ethereum. Data from on-chain analytics indicates that large investors are accumulating ETH at an increasing rate, which could signal a shift in market sentiment. Analysts have noted that Ethereum’s technological advancements in smart contracts and tokenization make it an attractive asset for institutional investors seeking long-term exposure. Furthermore, Ethereum’s performance has outpaced that of Bitcoin over the past several months, with the year-to-date return for ETH standing at 45%, compared to 4% for BTC [2].

As the market continues to evolve, Ethereum’s price gains may face near-term volatility due to liquidation events and macroeconomic shifts. However, with continued institutional adoption and regulatory tailwinds, the cryptocurrency appears well-positioned to test new all-time highs in the near future. Analysts remain cautious but optimistic, noting that Ethereum’s fundamentals continue to strengthen, even as price fluctuations persist.

Source:

[1] Why Arthur Hayes Expects Ethereum to Surge to $20,000 (https://finance.yahoo.com/news/why-arthur-hayes-expects-ethereum-210103605.html)

[2] ETH Price Prediction: Traders Target $10K ETH Amid $400M Liquidations (https://www.coindesk.com/markets/2025/08/23/ethereum-bets-see-unusually-high-usd400m-liquidations-as-some-now-target-usd10k-eth)

[3] Three reasons why Ethereum just broke a new all-time high (https://www.dlnews.com/articles/markets/three-reasons-why-ethereum-broke-a-new-all-time-high/)