Around 20:50, Ethereum (ETH) 
$2,374 reached a new record high, and there is a possibility that by the time this article is published, the peak might have been surpassed. Regardless, there are crucial factors that you need to understand behind this rise. Some pivotal elements include BTC reserve corporations, the status of ETFs, and the ETHBTC pair.
ETH Reserve Companies
The August surge in Ethereum was sparked by reserve companies. Two firms announced purchases close to $30 billion, rapidly enhancing investor appetite. But why are these corporations accumulating ETH?
Ethereum has transformed into the central platform for crypto-based financial services. Even Chinese banks are testing on the Ethereum network. National stablecoins are expected to primarily operate on Ethereum. The network, serving as the primary hub for tokenization, has grown immensely, making it hard for competitors to eradicate. Despite being the largest smart contract platform, its market value is smaller than BTC, potentially being more appealing for public company reserve stories.
Seventeen major publicly traded ETH reserve firms exist, a strategy inspired by Michael Saylor’s company, Strategy. This investment approach feeds stock prices, allowing firms to earn billions through more issuance, cash flow, purchases, and rises. Companies which began accumulating in June now hold over 3.1 million Ether, valued over $15 billion. The target is to reach $70 billion, suggesting significantly more ETH might be bought if planned stock sales proceed smoothly.
Combining ETF, DAO, and publicly traded companies, institutional ETH investors’ total assets have reached nearly $20 billion. Recent acquisitions include:
- 19 August: SharpLink acquired 143K ETH
- 18 August: ENS acquired 1.5K ETH, ETHZilla acquired 12.5K ETH
- 18 August: Bitmine acquired 373K ETF
These represent purchases made only on Monday and Tuesday, with the ETF channel being entirely distinct.
ETH ETF Flow
Recently, I’ve reiterated a crucial detail. Although BTC ETF is perceived as a more reliable asset, there were significant outflows. Conversely, ETH ETF saw competition-level inflows with BTC and net inflows despite BTC outflows. This signifies investors are pouring money into Ether, indicating interest in potential ETH returns.
For the first time, a billion-dollar inflow was observed on 11 August, with a net inflow of $337 million into ETH on that Friday. This trend appears poised to continue, anticipating further price rises. Powell’s Friday surprise established the favorable conditions Ethereum needed.
ETHBTC Pair
The ETHBTC pair has been outstanding. After around 1100 days of weakness, the momentum is reviving. I vividly remember losing the 0.05 level with USD pair weaknesses. However, with 0.038 becoming a support, the target moves to 0.044. Even in the base scenario, ETH’s price could reach $6000 if the target of 0.05BTC is achieved.
It’s crucial to maintain the 0.042 and 0.04BTC levels to stay optimistic. These are the crucial points to know about Ethereum’s rise. To compare with SOL and AVAX, you can review my morning assessment.
Finally, the current news flow is exceedingly significant. In the coming days, we’ll witness events like PCE, NVIDIA earnings, GDP, and Fed member statements, all inducing volatility. The quick summary in the news section of the Cryptoappsy app can be beneficial.
