Ether is pulling back to start the week, after hitting a fresh record over the weekend.
The price of the second largest cryptocurrency fell 6% to $4,548.32 on Monday, according to Coin Metrics. On Sunday, it rose to a fresh record of $4,954.81, after hitting an earlier all-time high Friday for the first time since 2021.
Meanwhile, bitcoin was last lower by more than 1% at $111,501.74. Over the weekend, it dropped to $110,779.01,its lowest level since July 10. The flagship cryptocurrency hit its most recent record of $124,496 on Aug. 13.
Both coins have both erased their gains from Friday, when crypto assets took off with the broader market after Federal Reserve Chair Jerome Powell hinted at upcoming rate cuts and investors returned to risk-on mode. That triggered forced selling of more than $245 million of long positions in ETH and about $175 million in long bitcoin positions in the past 24 hours,according to CoinGlass.
Ether Outperforms Bitcoin as Regulatory Tailwinds and Corporate Adoption Drive Growth
Ether (ETH) has surpassed Bitcoin (BTC) in recent weeks as the leading cryptocurrency, fueled by positive regulatory developments, increased interest in stablecoins, and significant purchases by corporations adding Ether to their treasuries. This shift has bolstered ETH, allowing it to maintain a price above $4,000 – a level it had previously struggled to consistently surpass as 2021.
According to Ben Kurland, CEO of crypto research platform DYOR, “The buyers are finally bigger than the sellers.” He points to the consistent inflows into Ether ETFs and the growing trend of public companies treating ETH as a treasury asset capable of being staked for yield as key drivers. This represents a more stable demand source than typical retail speculation.
kurland further explained that factors like nearly a third of the Ether supply being locked in staking, the maturity of scaling solutions, and the potential for falling interest rates are contributing to this positive momentum.”Those forces turned $4,000 from a resistance level into a foundation for re-pricing ETH’s next chapter,” he stated.
recent data from SoSoValue indicates strong inflows into Ether ETFs, with $341 million recorded on Friday, marking the second consecutive day of positive flows. Fidelity’s Conquest fund led these inflows. conversely, Bitcoin ETFs experienced their sixth consecutive day of net outflows, largely driven by outflows from BlackRock’s iShares Go fund, although some other Bitcoin ETFs saw minor inflows. https://www.cnbc.com/appchart?symbol=ETH.CM%3D&range=5D&comp=BTC.CM%3D&type=mountain&embedded=true&$DEVICE$=undefined
For the week ending August 22, Ether ETFs saw $237 million in net outflows – the first negative week as May 9. Bitcoin ETFs experienced over $1 billion in net outflows during the same period.
Key Takeaways:
ether’s Rise: Ether is currently leading the crypto market due to regulatory factors,stablecoin interest,and corporate adoption.
$4,000 Support: ETH has successfully maintained a price above $4,000, establishing it as a support level.
ETF Flows: Ether ETFs are experiencing notable inflows, while Bitcoin ETFs are facing outflows.
Staking & Yield: The ability to stake Ether and earn yield is attracting both corporate and individual investors.