ETH has outperformed BTC in August, driven by a 'risk-on' sentiment after Jackson Hole and signs of rotation of large portfolios towards Ether. Powell's speech ignited rate cut bets and ETH reacted with a double-digit jump, gaining ground on the market leader.

Relative performance: the ETH/BTC ratio has surged in August, with daily readings in the 0.037–0.038 range and a notable monthly advance against BTC.

Whales in action: on-chain reports show rotation from BTC to ETH and aggressive purchases in the $4.1k–$4.3k zone.

Institutional narrative: Standard Chartered raised its end-of-2025 target for ETH to $7,500, reinforcing the pro-ETH bias in professional flows.

Contrarian sentiment: despite the rise, retail remains skeptical; whales absorb supply.

Why whales favor ETH now

1. Infrastructure thesis: the vision of Ethereum as the base for tokenization and on-chain finance is growing; large public investors are already betting on it.

2. Cycle catalysts: expectations of cuts and improved liquidity usually favor high-beta assets like ETH over BTC.

3. Flows and treasuries: banks and asset managers explore products in Ethereum, feeding the narrative of institutional adoption.

Technical: ETH/BTC at an inflection point

The ETH/BTC cross is building a base and attacking intermediate resistances (0.037–0.040). A sustained close above 0.040 would improve the bias towards a bullish continuation of the pair.

In spot, large portfolio purchases near $4,100–$4,300 have defended supports after rapid declines, suggesting accumulation by strong hands.

What to watch

Breakout of the ETH/BTC ratio > 0.040 with volume.

On-chain traces of rotation (whales reducing BTC and increasing ETH).

Macro narrative (employment/CPI data and Fed guidance) that keeps rate compression alive.

Institutional signals (price target revisions, adoption, and tokenization).

Risks

BTC dominance rises and cools the rotation.

Accelerated profit-taking if ETH fails at 0.040 ETH/BTC.

Regulatory or macro shock that drains liquidity.

Conclusion

The relative advantage of ETH over BTC in August is supported by buying whales, macro catalysts, and an expanding institutional narrative. If the ETH/BTC pair breaks 0.040 and flows hold, we could see an extension of outperformance in the short/medium term. Risk management first; the key battle is at the resistances of the ratio and at the $4.1k–$4.3k support zone.

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