Ethereum News Today: Institutional Whales Steer Ethereum's Bullish Comeback Amid Fed Signals

Ethereum’s taker buy volume hit $5.76 billion as the market reacted to a combination of macroeconomic signals and institutional investment activity. The price of ETH stabilized near the $4,100 support level following a period of profit-taking and increased short positions in futures markets. Large-scale investors, including those holding between 10K and 100K ETH, showed resilience by increasing their holdings by 550K ETH during the correction, despite a broader decline in prices. Meanwhile, small-scale investors trimmed their positions, realizing over $4 billion in profits amid uncertainty surrounding macroeconomic data and the Federal Reserve's policy direction [1].

The Ethereum price action was significantly influenced by the dovish comments from Federal Reserve Chair Jerome Powell during his Jackson Hole speech. Powell signaled a potential 25 basis point rate cut in September, which shifted the market sentiment toward risk-on assets and pushed ETH to a new all-time high of $4,880. The move was supported by strong ETF inflows, with nearly 649,000 ETH flowing into US-listed spot Ethereum ETFs in the previous week, marking the largest weekly inflow on record. This institutional demand provided a counterbalance to the profit-taking and shorting pressure, reinforcing a bullish narrative for Ethereum [2].

On-chain data from platforms like Coinglass and CryptoQuant revealed a surge in short liquidations, with over $100 million in positions wiped out over the past 24 hours. The Ethereum futures net taker volume showed a large short bias, with net short volumes approaching record levels seen in December 2024, a period that preceded a 60% price decline. While such short positions pose downside risks, they could also catalyze a short squeeze if the bullish momentum persists. The Ethereum balance by holder value data further indicated that institutional accumulation, particularly by digital asset treasuries (DATs), helped stabilize prices during the correction [1].

Corporate Ethereum treasury buying also played a key role in supporting the price. Over the past month, corporate ETH treasuries acquired about $1.6 billion worth of ETH, with firms like BitMine, SharpLink, and others leading the buying spree. As of late August 2025, these corporate holdings had grown to over $29.75 billion, reflecting a shift in perception of Ethereum from a speculative asset to a utility-rich reserve asset. This growing institutional adoption, combined with increased Ethereum ETF inflows, has created a robust foundation for long-term price stability and potential further gains [3].

Technical indicators reinforced the bullish outlook for Ethereum. The Relative Strength Index (RSI) and Stochastic Oscillator (Stoch) moved back above neutral levels, signaling a resumption of dominant bullish momentum. The price of ETH surged over 6% on Wednesday as bulls defended the $4,100 support level. If the price continues to rise and reclaims the $4,500 key level, it could retest the all-time high resistance at $4,868. A successful breakout above this level could validate a bullish pennant pattern and set the stage for further gains. Analysts have also noted that the current price action aligns with historical patterns seen in late stages of strong uptrends, where a retest of critical support levels helps flush out weak hands before a stronger recovery [1].

The broader market dynamics, including ETF inflows, macroeconomic sentiment, and DeFi-driven yield-seeking behavior, have created a favorable environment for Ethereum. As the Federal Reserve’s dovish stance continues to influence risk-on strategies, Ethereum-linked assets and yield-bearing tokens have attracted significant capital flows. The market is now watching closely to see whether this momentum can be sustained, particularly as the September Federal Open Market Committee (FOMC) meeting approaches. Any additional signals from the Fed or shifts in institutional demand could further shape the trajectory of Ethereum in the coming months [7].

Source:

[1] ETH bounces off $4100 as whales show resilience (https://www.mitrade.com/insights/crypto-analysis/eth/fxstreet-ETHUSD-202508210940)

[2] Ethereum (ETH) Price Prediction: Could $3900 Retest Set ... (https://coincentral.com/ethereum-eth-price-prediction-could-3900-retest-set-stage-for-rally-to-8000-analyst-weigh-in/)

[3] ETH Soars To New All-time High On Fed Rate Cut Signal (https://cointelegraph.com/news/eth-hits-new-highs-as-fed-turns-dovish-ether-etf-inflows-resume)

[4] Arthur Hayes says Ethereum will go as high ... - Yahoo Finance (https://finance.yahoo.com/news/arthur-hayes-says-ethereum-high-150408041.html)

[5] Ethereum's Price Explodes to a New All-Time High (https://cryptopotato.com/ethereums-price-explodes-to-a-new-all-time-high/)

[6] Ethereum (ETH) Crashes Over 10% After $4700 Milestone ... (https://www.cryptopolitan.com/ethereum-eth-crashes-over-10-after-4700-milestone-investors-gravitating-toward-a-viral-defi-crypto/)

[7] Why Fed Chair Jerome Powell's Speech Pushed Ethereum ... (https://unchainedcrypto.com/why-ethereum-defi-assets-soared-the-highest-on-jerome-powells-speech/)