Ether Slides to Start the Week After Reaching Fresh Record Near $5,000
August 24, 2025 – CNBC
Ether, the world’s second-largest cryptocurrency by market capitalization, experienced a sharp decline at the beginning of the week after hitting a record high over the weekend. The digital asset’s price fell approximately 8% on Monday, retreating to $4,431.60 according to data from Coin Metrics, erasing gains seen during an impressive rally tied to the recent Jackson Hole economic symposium.
Over the weekend, Ether surged to an all-time peak of $4,954.81 on Sunday, following an earlier record set on Friday. This latest high marked Ether’s strongest rally since 2021. Despite starting the week lower, the token has demonstrated significant momentum over recent weeks, buoyed by various factors including regulatory progress and increasing institutional interest.
Meanwhile, Bitcoin, the largest cryptocurrency, also dropped 2% to $110,531 on Monday — its lowest level since July. Bitcoin had reached a near-term record of $124,496 on August 13 but has since retraced some of those gains.
Market Movements and Influences
The crypto sector’s recent volatility is linked to market reactions to Federal Reserve Chair Jerome Powell’s remarks last week. At the annual Jackson Hole symposium, Powell hinted at potential upcoming interest rate cuts, which spurred a “risk-on” appetite in the markets. This caused significant forced liquidations in cryptocurrency positions, with more than $245 million of long Ether positions and around $175 million in Bitcoin longs sold off within just 24 hours, according to CoinGlass data.
Ether’s outperformance relative to Bitcoin in recent weeks can be attributed to a number of supportive developments. Regulatory clarity around Ether and increased enthusiasm around tokenization—including the growth of stablecoins—have all helped propel demand. Additionally, a new wave of corporate buyers, including firms such as Bitmine and SharpLink, have begun accumulating Ether in significant quantities.
Ben Kurland, CEO of crypto research platform DYOR, explained the shift in market dynamics: “The buyers are finally bigger than the sellers. ETH ETFs are drawing steady inflows, and public companies are beginning to treat ETH as a treasury asset they can stake for yield — a stickier form of demand than retail speculation.” He added that with nearly a third of Ether’s supply locked in staking and maturing scaling solutions, combined with the prospect of falling costs of capital due to rate cuts, the $4,000 mark has transformed from a resistance level into a foundation for Ether’s next phase of growth.
ETF Flows Highlight Interest Shifts
On Friday, Ether exchange-traded funds (ETFs) attracted $341 million in inflows, marking their second consecutive day of positive flows. Fidelity’s FETH fund led the inflows, signaling growing institutional appetite. In contrast, Bitcoin ETFs registered their sixth straight day of net outflows, predominantly from BlackRock’s flagship IBIT fund, although minor inflows were observed in other Bitcoin ETF offerings.
In the broader weekly picture ending August 22, Ether ETFs experienced net outflows totaling $237 million, marking their first week of negative flows since early May. Bitcoin ETFs suffered more pronounced outflows amounting to over $1 billion for the same period.
Looking Ahead
Despite Monday’s sharp pullback, Ether continues to demonstrate strong fundamentals supported by increasing adoption, a growing corporate user base, and promising technological upgrades. Analysts suggest that as regulatory landscapes clarify and new financial products emerge, Ether could maintain its role as a leading driver in the evolving crypto market.
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This article is for informational purposes only and does not constitute investment advice.