- Ethereum hits new peak, bulls prepare for $5,000 challenge.
- Short traders suffer huge losses as Ethereum rally gains momentum.
- Experts predict Ethereum could surpass Bitcoin in coming market cycle.
Ethereum has reignited excitement in the cryptocurrency market after soaring to a new all-time high above $4,885 on August 22, 2025. The rally gave fresh confidence among its members and the members soon focused on the next milestone of $5,000.
According to Ethereum proponent Anthony Sassano the digital asset has now proven its strength as a decentralized network and a superior long-term store of value compared to Bitcoin. His comments underscore the emerging view that Ethereum will at some point in the future rival Bitcoin in terms of dominance.
Also Read: XRP Soars Past $180B, Joins World’s Top 100 Assets After SEC Case Ends
Ethereum’s Rally Brings Heavy Losses for Bears
Momentum in the ETH market has been intense, with the ETH to BTC ratio climbing from 0.017 to 0.041 over four months. This is an indication of Ethereum performing better than Bitcoin by over 2.5 times over the time period, which gives confidence to its supporters.
Nonetheless, the rally was expensive to short traders, with nearly $468 million in positions liquidated during one of the most savage sessions for Ethereum skeptics in weeks. This liquidation wave gave more impetus to the rally that was taking place.
The interest of investors was also manifested in staking dynamics. The unstaking queue that was already congested several weeks ago fell back to under 15 days on August 20. Analysts consider this to be an indication of increased confidence in Ethereum holders.
Experts See Ethereum Challenging Bitcoin’s Dominance
According to Fundstrat’s Tom Lee Ethereum could move beyond its rival Bitcoin in market capitalization during this cycle. The same bullish sentiment was shared by investor Raoul Pal who believes that until the middle of 2026, altcoin markets will continue to be robust.
The community mood on social media platforms echoed these sentiments as Ethereum enthusiasts cheered the new high and mocked bearish forecasts. Others feel that the $5,000 mark is not far away as Ethereum is in a period of price discovery.
Currently, Ethereum is trading at around or slightly lower than its all-time high of around $4,710, but with a very healthy trend upwards. As forecasters expect the growth to continue, Ethereum enthusiasts are now confidently on the way of breaking the $5,000 mark.
Ethereum’s surge to new highs has strengthened its case as a leading digital asset. The focus now shifts to whether it can push past $5,000 and challenge Bitcoin’s dominance.
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