ETH Surges to $4,700, Nearing All-Time High Amid Bitmine's $20B Plan
Ethereum surged over 10% on Aug. 13, reaching $4,780, its highest price since November 2021, and marking a nearly 30% increase since trading below $3,600 on Aug. 6.
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WRITTEN BY
Terence Zimwara
ETH Surges to $4,700, Nearing All-Time High Amid Bitmine's $20B Plan
Institutional and Analyst Outlook
Ethereum ( ETH) closed in on its all-time high on Aug. 13 after surging by more than 10% in 24 hours to reach $4,700 for the first time since November 2021. Since Aug. 6, when it briefly traded below $3,600, ETH was up by nearly 30% in less than seven days, making it the standout performer among altcoins.
ETH Surges to $4,700, Nearing All-Time High Amid Bitmine's $20B Plan
ETH’s rally to $4,708 (5.15 a.m. EST) also helped to push the cryptocurrency ecosystem’s total market capitalization back up above $4.1 trillion. The number two digital asset’s latest rally obliterated over $250 million in short bets in just 24 hours, a figure nearly 10 times that of bitcoin ( BTC) shorts wiped out.
The cryptocurrency’s rally has resulted in a large majority of the ETH supply being in profit. One key opinion leader (KOL), Ted Pillows, puts the figure of ETH supply in profit closer to 100%.
“ ETH supply in profit is now at 97.22%. This will be 100% real soon,” the KOL stated.
The digital asset’s surge coincided with reports that the ethereum treasury company Bitmine Immersions wants to raise $20 billion, which will be used to bolster its ETH holdings to 5% of the total circulating supply. These reports come just days after Bitmine upped its ETH holdings to 1,150,263, bringing the value of its crypto treasury above $5 billion.
As reported by Bitcoin.com News, the ethereum treasury company’s ETH stash made it the third-largest holder of cryptocurrency treasury assets globally. Only Michael Saylor’s Strategy and Marathon Digital Holdings have larger holdings.
Capital Rotation
Although Bitmine’s plan is seen as impacting the ETH supply-demand structure, Bitunix Analyst cautions that such a plan is a mid- to long-term factor that is unlikely to “change the immediate selling pressure at the historical supply zone.” Furthermore, the Bitunix warns that increased institutional adoption often leads to rising liquidity concentration, which in turn amplifies gains during bull runs but accelerates declines during pullbacks.
Meanwhile, Koroush AK, the founder of Zero Complexity Trading, stated that when ETH starts outperforming BTC, it is a signal that capital is flowing into ethereum.
“This is your early warning that the next wave of money could hit large-cap altcoins. Looking at the ETH/ BTC chart allows you to clearly map out the strength on ETH,” AK wrote on X.
The founder added that once ETH starts to show “clear strength” over BTC, it means “large-cap altcoins like SOL, SUI, AVAX, and XRP are usually next in line.” AK nevertheless warns that this capital rotation “can reverse fast.”
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