Bitcoin may have set multiple records this year, but ethereum ( ETH) just staged its first breakout since November 2021 this week, pushing YTD gains to 43% against bitcoin’s 23%. The real question now is whether ethereum’s rally has only just begun.
Could Ethereum Be Poised for a Shock Move?
At the start of the year, ethereum (ETH) traded at 0.036 BTC per coin. By April and May, it had slipped to 0.019 BTC, but it has since climbed to 0.042 BTC. 2025 has been a slower grind for ETH, with its momentum taking longer to appear, but several factors have fueled the recent climb. Chief among them is the thin supply of ETH sitting on exchanges — the lowest level since July 2016.
At press time, data from cryptoquant.com shows centralized exchanges hold 18.4 million ether, the lowest level in more than nine years since July 17, 2016. With exchange reserves continuing to decline, it signals reduced selling pressure. On top of that, institutional demand has been strong, driven by exchange-traded funds (ETFs) and publicly listed companies.
ETH/USD via markets. bitcoin.com on Sunday, Aug. 24, 2025.
Ethereum ETFs launched later than their bitcoin counterparts — debuting on July 23, 2024, after bitcoin’s January rollout — and their early days were anything but smooth. The nine ether ETFs now hold roughly 6.4 million ETH valued at about $30.54 billion, representing more than 5% of the supply in circulation. Following in bitcoin’s footsteps, treasury firms have also begun accumulating ETH.
In total, 14 publicly traded companies hold 2,963,408 ETH valued at about $14.29 billion. As ETFs and corporations accumulate ethereum ( ETH), the supply on exchanges shrinks, creating tighter availability as demand builds. ETH supporters remain highly optimistic about the asset’s outlook. One bullish X account wrote:
“ ETH is going to $10,000 this cycle. If you don’t believe me or don’t get it, I don’t have time to try to convince you, sorry.”
Many ETH supporters share this view, and X is filled with a great deal of posts echoing the same sentiment. One user posted, “Crazy to think ETH on exchanges is at its lowest in nearly a decade. Feels like most of it is locked, staked, or just never coming back to CEXs. If supply keeps shrinking while demand picks up… we all know how that story ends. And, $10K won’t be crazy. Are you ready for it?”
Samir Kerbage, chief investment officer at Hashdex, believes the growth of stablecoins will bolster ETH’s price. In a note sent to Bitcoin.com News, he said ether’s new all-time high is a clear indication of investor demand that extends beyond bitcoin.
“As Ethereum and other smart contract platforms provide the infrastructure for many of crypto’s most mature use cases, including stablecoins and tokenization, we anticipate continued strong demand for this emerging asset class,” Kerbage wrote.
The Hashdex executive added:
“I would expect ETH to surpass $10,000 once we start to see stablecoin solutions being implemented for payments within the U.S.”
Ethereum’s climb hints at a broader transition within digital assets, where institutional involvement, shrinking exchange reserves, and rising stablecoin activity all converge to create a unique backdrop. The combination suggests ether’s role could expand beyond speculative cycles, potentially reshaping how investors and companies approach the market. For many, this is not just a rally—it may be the start of something bigger.
