#打榜优质内容# The market supply and demand balance has completely tilted, with institutional buying volume reaching 32 times the new supply. Ethereum is approaching its historical peak with astonishing momentum.

On August 9, the price of Ethereum soared past the $4200 mark like an arrow leaving the bow, just a step away from its historic peak of $5000. Looking back at the low point in April, ETH has achieved an astonishing increase of nearly 150% within four months. Once overshadowed by Bitcoin, Ethereum is now declaring its value return with a fierce upward trend. Behind this surge is the tremendous power of institutional capital reshaping the landscape of the crypto market!
Among the many positive factors, the large-scale entry of institutional capital is undoubtedly the core engine of this round of market activity. This shift contains a profound cognitive upgrade:
1 The positioning of assets undergoes a qualitative change.
Institutions no longer view ETH as a mere speculative asset, but rather bestow upon it a strategic position equivalent to traditional assets. Unlike traditional companies that passively hold Bitcoin, the "Ethereum Treasury" places more emphasis on its active yield capability—achieving an annualized return of 8%-12% through staking or participating in the DeFi ecosystem to obtain excess returns.
2 Financial infrastructure improvement eliminates entry barriers. The Ethereum spot ETF product is expected to experience explosive growth in the second quarter of 2025, providing a compliant channel for traditional funds. Currently, the scale of Ethereum ETFs is still less than 12% of Bitcoin ETFs, while the market value of ETH has reached 19% of BTC. This 12% allocation gap indicates a huge incremental space.
3 The wave of tokenization in the US stock market establishes underlying value. Wall Street is viewing Ethereum as the preferred network for asset tokenization. Tom Lee, co-founder of Fundstrat, pointed out: "Ethereum is favored by institutions due to its technological stability and legal clarity." In July, the tokenization of US stocks accelerated, with both the open architecture of xStocks and the closed model of Robinhood deeply relying on the Ethereum ecosystem for value circulation.
In the short term, breaking through the historical high of $5,000 is almost a common expectation in the market. The technical aspect has broken through the key double top resistance level of $4,000, opening up a path for upward movement. The strength of institutional positioning further provides fundamental support for this expectation—by July 2025, $5.4 billion flowed into the Ethereum spot ETF, setting the highest single-month record since the product's launch. From a mid-term perspective, some institutions have given bolder predictions. Tom Lee, co-founder of Fundstrat, directly anchors the target price at $15,000, supported by the strategic layout of companies like Bitmine planning to hold 5% of the total circulation of ETH.
According to the supply and demand model, institutions may buy 5.33 million ETH (worth $20 billion) in 2026, while the Ethereum network will only have an additional supply of 800,000 during the same period, with demand being 6.6 times the supply. This persistent demand surplus will provide strong support for the price.
However, the market never has only a one-sided trend. There are at least four risks on the path of Ethereum's explosive rise:
1 The Dilemma of Security: The complexity of smart contracts has always been a double-edged sword. In March 2025, a certain project lost over $300,000 due to a vulnerability in the Solidity compiler. Once such incidents occur in critical protocols, they can easily trigger a chain reaction of panic.
2 Gas Fee Bottleneck: The high transaction fees during network congestion remain a stumbling block for ecosystem development. Ordinary users face real pain points behind the joke of "gas fees are crying."
3 Policy variables: Although the implementation of the US GENIUS Act brings certainty, the strict anti-money laundering and reserve audit requirements of Hong Kong's "Stable Coin Regulation" may disturb market sentiment.
4 Institutional Dependence: The current market heavily relies on institutional funds. Once there is a change in the macro environment or a net outflow of funds from ETFs, the risk of a stampede will significantly increase.
When 2.83 million ETH were swallowed by institutional whales and the monthly inflow of stablecoins surpassed 8 billion USD, a financial revolution co-danced by traditional capital and the crypto ecosystem has quietly begun on the Ethereum chain. Historical highs have never been the endpoint, but the starting point for the unfolding of new value narratives.