Ethereum surged over 10% on August 13, reaching $4,780, the highest price since November 2021, marking a nearly 30% increase since trading below $3,600 on August 6.
Prospects of Organizations and Analysts
Ethereum approached its all-time high on August 13 after rising over 10% in 24 hours, reaching $4,700 for the first time since November 2021. Since August 6, when it briefly traded below $3,600, ETH has surged nearly 30% in less than seven days, becoming the standout coin among altcoins.
The surge of ETH to $4,708 (5:15 EST) has also helped push the total market capitalization of the cryptocurrency ecosystem above $4.1 trillion. The latest growth of the second largest digital asset has wiped out over $250 million in short orders within just 24 hours, a figure nearly 10 times the amount of Bitcoin short orders that were liquidated.
The price surge of this coin has led to a significant portion of the ETH supply becoming profitable. A key opinion leader (KOL), Ted Pillows, estimated the profitable ETH supply to be nearly 100%.
"The profitable ETH supply is now at 97.22%. This will soon be 100% for real," the KOL stated.
The price increase of this digital asset coincides with reports that the Ethereum treasury company, Bitmine Immersions, wants to raise $20 billion, which will be used to increase its ETH holdings to 5% of the total circulating supply. These reports surfaced just days after Bitmine boosted its ETH holdings to 1,150,263, pushing their cryptocurrency treasury value above $5 billion.
As reported by Bitcoin.com News, the amount of ETH held by the Ethereum treasury company has made it the third-largest cryptocurrency treasury holder globally. Only the strategies of Michael Saylor and Marathon Digital Holdings have larger holdings.
Capital Rotation
Although Bitmine's plan is seen as affecting the supply-demand structure of ETH, a Bitunix analyst warned that such a plan is a medium to long-term factor, unlikely to "immediately change selling pressure at historical supply zones." Furthermore, Bitunix cautioned that increased institutional adoption often leads to increased liquidity flow, which will amplify gains during growth cycles but also accelerate declines during pullbacks.
Meanwhile, Koroush AK, the founder of Zero Complexity Trading, stated that when ETH begins to outperform BTC, it is a signal that capital is flowing into Ethereum.
"This is your early warning that the next wave of money could impact large-cap altcoins. Looking at the ETH/BTC chart allows you to clearly map ETH's strength," AK wrote on X.
The founder added that once ETH begins to show "clear strength" against BTC, it means that "large-cap altcoins like SOL, SUI, AVAX, and XRP are often the next candidates." However, AK warns that this capital rotation "can quickly reverse."