Bitcoin may have set multiple records this year, but ethereum (ETH) just made its first breakout since November 2021 this week, pushing year-to-date (YTD) gains to 43% compared to 23% for bitcoin. The real question now is whether the ethereum rally has just begun.
Is Ethereum Destined for a Shocking Move?
At the beginning of the year, ethereum (ETH) traded at 0.036 BTC per coin. By April and May, it slid down to 0.019 BTC, but since then has climbed to 0.042 BTC. The year 2025 is a slower growth process for ETH, with its momentum appearing to take longer, but many factors have driven recent growth. Most notably, the thin supply of ETH on exchanges – at its lowest since July 2016.
At press time, data from cryptoquant.com shows centralized exchanges holding 18.4 million ether, the lowest level in over nine years since July 17, 2016. With exchange reserves continuing to decline, this indicates reduced selling pressure. Furthermore, demand from institutions is strong, driven by exchange-traded funds (ETFs) and publicly listed companies.
ETH/USD via markets.bitcoin.com on Sunday, August 24, 2025.
Ethereum ETFs launched later than their bitcoin counterparts – debuting on July 23, 2024, after bitcoin launched in January – their early days haven’t been smooth. Nine ether ETFs currently hold about 6.4 million ETH, worth approximately $30.54 billion, accounting for over 5% of the total circulating supply. Following in bitcoin's footsteps, financial management firms have also started accumulating ETH.
In total, 14 publicly listed companies hold 2,963,408 ETH worth about $14.29 billion. As ETFs and corporations accumulate ethereum (ETH), exchange supply decreases, creating scarcity as demand rises. ETH supporters remain extremely optimistic about the asset's prospects. An optimistic X account wrote:
“ETH will reach $10,000 in this cycle. If you don’t believe or understand, I don’t have time to try to convince you, sorry.”
Many ETH supporters share this view, and X is filled with posts echoing the sentiment. One user posted, “It's crazy to think that ETH on exchanges is at its lowest in nearly a decade. It feels like most has been locked, staked, or will never return to CEXs. If supply continues to decrease while demand increases… we all know how the story will end. And, $10K won’t be crazy. Are you ready?”
Samir Kerbage, investment director at Hashdex, believes that the development of stablecoins will bolster ETH prices. In a note sent to Bitcoin.com News, he stated that the new all-time high of ether is a clear sign of investment demand beyond bitcoin.
“As Ethereum and other smart contract platforms provide infrastructure for the most mature use cases of crypto, including stablecoins and tokenization, we anticipate strong ongoing demand for this emerging asset class,” Kerbage wrote.
The CEO of Hashdex added:
“I expect ETH to surpass $10,000 once we start seeing stablecoin solutions deployed for payments in the United States.”
Ethereum's breakout suggests a larger transformation in digital assets, where institutional participation, shrinking exchange reserves, and increased stablecoin activity all converge to create a unique landscape. This combination indicates that ether's role could extend beyond speculative cycles, potentially reshaping how investors and companies approach the market. For many, this is not just a price surge – it could be the start of something bigger.
