Ethereum News Today: Investors Bet on Ethereum's "Belief Zone" as Bitcoin Loses Momentum

Investors are increasingly shifting their attention and capital toward Ethereum (ETH) as Bitcoin (BTC) faces a period of consolidation and uncertainty. While BTC remains under pressure, with recent price declines sparking concerns about a potential bearish phase, Ethereum has broken through key technical and psychological levels, signaling a structural shift in investor sentiment and on-chain behavior. This divergence has led to a notable rotation of capital from Bitcoin to altcoins, with Ethereum emerging as the focal point of the current bull market.

On-chain data indicates that Ethereum has entered what analysts describe as the "belief zone," a phase historically associated with sustained bullish momentum. Metrics such as the Long-Term Holder (LTH) Net Unrealized Profit/Loss (NUPL) and the Market Value to Realized Value (MVRV) ratio suggest that Ethereum is significantly undervalued compared to previous cycles. The LTH NUPL indicator, which measures the profitability of investors who have held ETH for over 155 days, has entered the "belief-denial" range—a precursor to major price surges in past bull cycles. Meanwhile, the MVRV ratio stands at 2.08, well below peak readings from 2021 and 2017, indicating that Ethereum still has room for price appreciation before reaching euphoric levels.

Ethereum’s price has surged more than 240% since April 2025, reaching a record high of $4,954.81 on August 24 before retreating to $4,431.60 by the following Monday. This correction follows a pattern seen in previous bull markets, where price consolidations have often been followed by renewed upward momentum. Technical analysts highlight a validated megaphone pattern on the weekly chart, with a potential target of $10,000 if the current trend continues. Additionally, Ethereum’s price retest of the neckline at $4,100 confirmed a breakout from a rounded bottom pattern, setting the stage for a potential move toward $12,130 on the daily chart.

In contrast, Bitcoin has struggled to maintain its earlier momentum. After reaching a record high of $124,500 in early August, BTC has since retreated, with recent price movements suggesting a potential bearish correction. Key technical indicators, such as the Puell Multiple and MVRV Z-Score, remain in neutral territory, contradicting claims that the market has already peaked. However, the recent liquidation of $70 million in BTC long positions and a sharp decline in open interest suggest that the market is undergoing a period of capitulation by newer investors, while long-term holders remain unfazed.

This dynamic has led to a significant capital rotation from Bitcoin to Ethereum, with large institutional investors and "whales" actively rebalancing their portfolios. One notable example includes a $11 billion BTC whale who recently sold a substantial portion of his Bitcoin holdings to acquire Ethereum, locking in significant profits and signaling confidence in the second-largest cryptocurrency’s future performance. This shift is also reflected in ETF inflows, with Ethereum-based funds attracting capital while Bitcoin ETFs face continued outflows.

Analysts argue that Ethereum’s robust ecosystem, regulatory tailwinds, and growing institutional adoption position it for continued outperformance. The rising interest in Ethereum-based stablecoins and the passage of legislation such as the GENIUS Act are expected to further bolster demand. Additionally, Ethereum’s supply-constrained model, with a large portion of its circulating supply locked in staking mechanisms, supports a bullish outlook for the asset.

Source:

[1] Was $124K the top? Bitcoin's price peak signals tell a ... (https://cointelegraph.com/news/was-124k-the-top-bitcoin-price-peak-signals-different-story)

[2] Ether Price Enters 'Belief Zone' Following $5K All-Time Highs (https://cointelegraph.com/news/20k-eth-price-in-play-ethereum-belief-zone)

[3] $11B Bitcoin Whale closes $450M ETH long, scoops up ... (https://cointelegraph.com/news/11b-bitcoin-whale-closes-450m-eth-long-108m-ether)

[4] Ether slides to start the week after hitting a fresh record ... (https://www.cnbc.com/2025/08/24/crypto-market-today.html)

[5] Ether, Ethereum's coin, breaks 2021 all-time high (https://www.axios.com/2025/08/24/ether-all-time-high)