The move comes as Bitcoin struggles to recover from its August highs, highlighting a shift in momentum between the two largest digital assets.
Bitcoin managed only a modest rebound, up 0.5% to $111,700 after dropping as low as $107,500 earlier in the week. The world’s top cryptocurrency remains more than $12,000 below its August peak, and its recent price action has been marked by heavier volatility compared with Ethereum.
Ethereum, by contrast, has managed to hold firm above $4,400 for weeks, showing less price turbulence than Bitcoin. Analysts attribute this resilience to strong ETF inflows, the tightening effect of staking on circulating supply, and increased interest from corporate treasuries allocating to ETH.
One of the biggest drivers of Ethereum’s strength has been the rise of digital asset treasury (DAT) firms. These companies, which manage crypto reserves in a corporate structure, have been steadily building ETH positions throughout July and August.
Research desks note that these flows have often outweighed Bitcoin ETF inflows in recent weeks. Four major firms — Bitmine, SharpLink Gaming, Bit Digital, and BTCS — now control a combined 2.7 million ETH, worth more than $12 billion.
“ETH is clearly benefiting from treasury accumulation, and that’s been the real difference-maker,” said one analyst. “The question is how long these firms can continue deploying capital at this pace.”
Market strategists also highlight evidence of traders rotating profits from Bitcoin into Ethereum after BTC’s record-breaking summer rally. This capital shift has allowed ETH to capture stronger upside and led some to speculate about a broader altcoin season forming.
However, skeptics caution that Ethereum’s current outperformance may prove temporary if treasury buying slows or macroeconomic conditions sour.
Beyond crypto-specific flows, traders are watching the Federal Reserve’s September policy meeting closely. Markets have priced in a nearly 98% chance of a quarter-point cut, with upcoming U.S. jobs data on Friday likely to shape the final decision.
Employment numbers will be key: strong payroll growth could signal sticky inflation and dampen risk appetite, while weaker figures may support the Fed’s easing path — a scenario that would likely benefit risk assets, including Ethereum.
The information provided in this article is for informational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
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