Ether Surges as Traders Eye All-Time High; Bitcoin Tracks Higher Amid Strong ETF Inflows
Cryptocurrency markets kicked off the week in strong form, with Ether (ETH) leading gains among major assets. ETH has jumped over 21% in the past seven days, trading near $4,300, while Bitcoin (BTC) climbed 3% to approximately $120,254, nearing its previous record high.
Among other large-cap tokens, Solana (SOL), XRP, Dogecoin (DOGE), and BNB each posted modest 1% gains, recovering from weekend profit-taking to start the week in the green.
The positive momentum in digital assets mirrors broader market sentiment. U.S. equities rallied, with the S&P 500 rebounding from last week’s post-payrolls dip and the Nasdaq notching a new all-time high on the back of strong earnings, brushing aside fresh import tariffs and political noise.
Ether’s Outperformance Driven by Regulatory Tailwinds, ETF Inflows
Ether has outpaced its peers amid growing optimism around regulatory clarity and substantial inflows into ETH-based exchange-traded funds. This divergence in performance has been particularly evident in derivatives markets, with implied volatility (IV) showing a stark contrast between BTC and ETH.
“BTC implied volatility remains near all-time lows, while ETH’s has surged significantly,” said Augustine Fan, Head of Insights at SignalPlus, in a note to CoinDesk.
“ETH’s term structure is inverted, suggesting long-dated volatility is pricing around 70%. Meanwhile, BTC’s curve is flatter, with short-dated IV remaining compressed. Just a month ago, markets priced only a 5% chance of ETH hitting $4.5K in August—spot has already exceeded expectations.”
Traders Target All-Time Highs, Eye Key Macro Events
Market participants are increasingly positioning for a retest of ETH’s all-time highs, while BTC appears to be gaining traction as institutional investors broaden their exposure.
“Following the strong weekend rally, we expect continued upside in both BTC and ETH, assuming no major macro shocks,” said Jeff Mei, COO at BTSE, in a Telegram message to CoinDesk.
“Traders should keep a close watch on this week’s CPI and PPI data and developments around the next Federal Reserve chair nomination, both of which could influence interest rate expectations.”
At press time, the crypto market appears buoyed by a confluence of institutional interest, favorable policy signals, and improving macro sentiment — potentially setting the stage for a sustained move higher.
