Ethereum News Today: Regulators Empower Ethereum as Altcoin Momentum Shifts

Ethereum reached a new all-time high of $4,956 on August 24, 2025, marking a significant milestone in the cryptocurrency market as it continued to outperform Bitcoin. This surge followed the Federal Reserve Chair Jerome Powell’s comments at the Jackson Hole symposium, which hinted at potential rate cuts and triggered a broader market rally. The price rise saw Ethereum briefly surpass its previous peak set in 2021, with CoinGecko and CoinMarketCap reporting highs of $4,945 and $4,948, respectively. The rally was accompanied by a 6.3% price increase on the day, with ETH maintaining proximity to these levels in the following days [1].

The record-breaking movement was supported by robust inflows into U.S. spot Ethereum ETFs, which saw over $1 billion in daily inflows for the first time since their launch the previous year. These funds have recently outperformed their Bitcoin counterparts, reversing an earlier trend of Bitcoin dominance in the ETF space. This shift has been attributed to Ethereum’s regulatory clarity and increasing institutional adoption, with corporate entities such as Bitmine and SharpLink accumulating large ETH holdings. BitMine Immersion alone holds over $7 billion in ETH, while SharpLink Gaming has added more than $3.6 billion to its treasury [1].

Regulatory developments have also played a pivotal role in Ethereum’s ascent. The U.S. Securities and Exchange Commission (SEC) issued clearer guidance on staking services, allowing liquid staking providers to distribute rewards without requiring registration under the agency. This marked a departure from the previous administration’s stricter approach and provided a boost to Ethereum-based staking infrastructure. Additionally, the passage of the GENIUS Act, which created a regulatory framework for stablecoins, further solidified Ethereum’s position, as a majority of stablecoins operate on its blockchain [1].

Despite Ethereum’s record highs, Bitcoin’s price trajectory has shown signs of weakness. Onchain data from Glassnode indicates that all Bitcoin wallet cohorts have shifted into a distribution phase, with mid-sized wallets (10–100 BTC) acting as primary sellers. This synchronized behavior across different wallet sizes suggests broad sell-side pressure. On the other hand, smaller holders (0–1 BTC) have been accumulating since the price peak, while large holders above 1,000 BTC continue to distribute their holdings. The 100–1,000 BTC group is split between accumulation and distribution, with $105,000 emerging as a critical support level [2].

The Ethereum-led momentum has also been reflected in derivatives markets. Ethereum perpetual futures volume dominance reached an all-time high of 67% relative to Bitcoin, according to Glassnode. This shift indicates that traders have moved their speculative focus from Bitcoin to Ethereum, a trend historically associated with the onset of an "altseason." Additionally, the combined open interest across major altcoins, including Ethereum, Solana, XRP, and Dogecoin, set a new record of $60.2 billion. However, this metric saw a sharp $2.6 billion drawdown shortly after, highlighting the volatility and speculative nature of altcoin trading [6].

Market participants are closely monitoring Ethereum’s performance as a potential indicator of broader altcoin activity. Analysts have noted that Ethereum’s dominance in the derivatives market, coupled with its strong fundamentals and regulatory tailwinds, could signal an extended period of outperformance across the altcoin sector. This is particularly relevant as Bitcoin faces challenges from internal selling pressure and ETF outflows. The recent ETH price action, including its closure of a CME futures gap and massive token withdrawals from exchanges, further supports the thesis of an ongoing altseason [5].

Source: [1] Ethereum jumps record price move (https://finance.yahoo.com/news/ethereum-jumps-record-price-move-184709473.html) [2] Bitcoin holders distribute as $105k becomes BTC’s last stronghold (https://cointelegraph.com/news/bitcoin-holders-distribute-as-dollar105k-becomes-btc-s-last-stronghold) [3] Bitcoin futures demand rises even as BTC sells off (https://cointelegraph.com/news/bitcoin-futures-demand-rises-even-as-btc-sells-off-what-gives) [4] Crypto Market Today (https://www.cnbc.com/2025/08/24/crypto-market-today.html) [5] Altseason Things: Ethereum Perps Volume Sets New ATH (https://www.mitrade.com/insights/news/live-news/article-3-1060762-20250822) [6] Altseason Confirmed? Ethereum ATH After Powell’s Fed Pivot (https://captainaltcoin.com/altseason-confirmed-ethereum-ath-after-powells-fed-pivot-bitcoin-pumps/)