Ethereum has taken a new step by exceeding its previous set of all time in 2021, climbing above $ 4,900 before a slight correction. At the time of writing the editorial staff, the ETH is negotiated about $ 4,655, which represents a gain of 8.2% in last week.
This rally comes after three years of consolidation lower than its old peak, marking an important moment for the second cryptocurrency by market capitalization. Unsurprisingly, the upward momentum of Ethereum has also changed the feeling of the market, relaxing most ETH holders to profit.
The last movement was linked not only to retail activity, but also to increasing institutional participation. Analysts argue that this request could be a major factor supporting the renewed force of the Ethereum market.
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Institutional demand and market positioning
One of the cryptocurrency contributors, known as the Oinonen, stressed how Ethereum is increasingly attracting institutional interest, signaling a change in the broader story.
Although Bitcoin has historically been considered the favorite digital asset for major investors, the use of Ethereum in decentralized finance (DEFI) and recent entries in the Stock Exchange (ETF) Funds of ETH changes perceptions.
“Ethereum is now emerging as a challenger from the institutional domination of Bitcoin,” wrote Oinonen. For example, he highlighted the Bitmine immersion technologies of Tom Lee, which acquired $ 6 billion in Eth in just two months.
This alone brought Ethereum’s market capitalization from $ 300 billion to $ 557 billion. For the context, Microstrategy, led by Michael Saylor, accumulated about $ 3 billion in Bitcoin during the same period, stressing how important the recent accumulation of ETH has become.
This increase in institutional demand is also aligned with the technical rupture of Ethereum. Price action suggests not only speculative purchases, but also structural changes in the way the asset is integrated into professional portfolios.
ETFs are now approved and exchanging national platforms in several regions, change is considered an important step for the role of Ethereum in the world markets.
Ethereum short compression and perspectives of volatility
Another factor stimulating ETH prices’ action is the course of short positions on Binance. Oinonen noted that Ethereum has long been a privileged active ingredient for merchants betting on the drops.
The unexpected escape of new peaks, however, triggered what he described as a “short pressure”, forcing the lowering traders to buy ETH to cover their losses. This purchase pressure amplified the momentum upwards and contributed to the rapid movement around $ 4,900.
“The market is part of what could be called a” short pressure season, “said the analyst, adding that the persistent rally of Ethereum could continue to put pressure on the open sellers. Although this scenario supports short -term gains, it also introduces the possibility of increased volatility because the positions are unrolled.
For the future, Oinonen is expecting Ethereum and Bitcoin to push new heights in the coming months, although he warned that a market correction could emerge between the end of 2025 and the beginning of 2026.
The interaction between institutional demand, FNB entries and the dynamics of the derivative market is likely to define the trajectory of Ethereum during this period.
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