Ethereum Hits Multi-Year High on Institutional Buying — But a Short-Term Pullback Looms
Ethereum surged to $4,400 on August 12, its highest level in years and up 215% from April lows, driven by a wave of institutional accumulation. Leading the charge is Tom Lee’s BitMine, which already holds 833,000 ETH and plans to raise $24 billion for additional purchases — nearly matching the total assets of all Ethereum ETFs combined. Other firms like SharpLink and The Ether Machine are also buying heavily, while spot ETH ETFs saw a record $1 billion in daily inflows, bringing total inflows to $10 billion, led by BlackRock’s ETHA ETF. 
Ethereum continues to dominate key crypto sectors, controlling 66% of DeFi with leaders like Aave, Lido, and EigenLayer, and holding $138 billion in stablecoins — a sector boosted by President Donald Trump’s signing of the GENIUS Act. Total value locked (TVL) has surged 32% in the past month to over $200 billion. Futures market open interest has also hit a record $60 billion, signaling strong demand.
However, technical indicators suggest a near-term correction is likely. ETH trades far above its 50-day ($3,420) and 100-day ($3,000) moving averages, its RSI is overbought at 74, and a break-and-retest pattern could bring prices down to $4,100 before the next leg higher. Despite the risk of a short pullback, the overall 2025 outlook remains bullish.
