The Ethereum network is gaining traction among institutional investors, leading to a rise in its value and on-chain activity.
Rising Institutional Interest
Analysts at crypto research firm CryptoQuant highlighted a significant increase in demand from institutional investors. The price of ETH rose from $1,400 in April 2025 to nearly $5,000 by late August. Ethereum holdings by US ETF managers reached an all-time high of 6.7 million ETH, almost doubling since the price increase began.
Booming Ethereum Network
The Ethereum network is experiencing record transaction counts, with a total of 1.7 million transactions and 800,000 active addresses recorded in August. Daily smart contract interactions also saw growth, reaching 12 million, highlighting Ethereum's increasing role as a programmable settlement layer.
Prospects and Risks
ETH currently faces resistance at $5,200. The substantial increase in staking volumes to a record 36.2 million ETH illustrates growing long-term confidence in the network. However, achieving new heights while consolidating below this level may signal market cooling.
Overall trends indicate that Ethereum is solidifying its position in the cryptocurrency market, though short-term fluctuations may occur due to liquidity constraints and resistance at key price levels.
