Ethereum’s rally in August appears to be cooling, but the bigger picture suggests the trend is far from over.
For the past two weeks, ETH has been consolidating within the $4,255–$4,500 range, reflecting short-term caution among traders. While this may signal a temporary pause, analysts argue that Ethereum’s broader trajectory still points upward.
Ethereum’s Growing Edge Over Bitcoin
Since early August, Ethereum has outperformed Bitcoin in the spot market, seizing a 32.9% market share compared to BTC’s 32.6%. During the week of August 18–25, ETH dominance climbed as high as 41%, with spot trading volume reaching $480 billion—well above Bitcoin’s $400 billion, according to CryptoRank data.
The futures market reinforces this momentum. ETH futures volume has exceeded Bitcoin’s since mid-July, hitting a record $3.08 trillion in August. Open interest stands at $59 billion, down slightly from its peak but still signaling strong positioning.
The ETF Effect
A major catalyst has been the rise of Ethereum ETFs, which pulled in nearly $10 billion in net inflows in 2025. ETF spot trading volume is approaching $200 billion, now representing 16% of ETH’s total spot activity—an all-time high.
BlackRock’s ETHA fund dominates with 74% of ETF trades, helping push ETH ETF assets under management to $25 billion. Institutional appetite clearly remains strong.
However, not all is bullish in the short run. Ethereum ETFs are currently facing their longest outflow streak since April—six consecutive days of withdrawals.
On-Chain Strength Remains Solid
Despite short-term ETF outflows, Ethereum’s on-chain activity remains impressive:
- Total Value Locked (TVL): $258 billion
- Monthly Active Addresses: 51.7 million
- DEX Trading Volume: $140 billion
- Exchange Balances: At a 3-year low
These metrics highlight resilient demand and a potential setup for renewed momentum once consolidation ends.
Silent Compression: Building for the Next Move
Market watchers, including Altcoin Vector, note that capital has been rotating toward low-cap tokens, a shift that often precedes funds flowing back into Bitcoin. Still, Ethereum may simply be in an accumulation phase, with “silent compression” beneath the surface.
If history repeats, this tightening phase could prepare ETH for another strong breakout once buyers regain confidence.
Bottom Line
Ethereum’s rally may be slowing in the near term, but its institutional support, robust on-chain fundamentals, and ETF-driven liquidity point to long-term strength. A period of consolidation could be exactly what ETH needs before launching its next leg higher.
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