Ethereum Soars to $4,780 – 97% of Investors Are Profiting, A Wave of Money Is Preparing to Flow into Altcoin

Ethereum rose more than 10% on August 13, reaching $4,780, the highest price since November 2021, marking an increase of nearly 30% since trading below $3,600 on August 6. Prospects of Organizations and Analysts Ethereum approached its all-time high on August 13 after rising more than 10% in 24 hours, reaching $4,700 for the first time since November 2021. Since August 6, when it briefly traded below $3,600, ETH has increased nearly 30% in less than seven days, becoming the standout coin among altcoins.

The surge of ETH to $4,708 (5:15 EST) has also helped push the total market capitalization of the cryptocurrency ecosystem above $4.1 trillion. The latest growth of the second largest digital asset has wiped out more than $250 million in short selling within just 24 hours, a figure nearly 10 times the amount of Bitcoin short sales that were liquidated. The price increase of this currency has led to a large portion of ETH supply being profitable. A leading opinion leader (KOL), Ted Pillows, puts the number of profitable ETH supply at nearly 100%. "The supply of ETH has now reached a profit level of 97.22%. This will soon be a true 100%," the KOL stated. The price increase of this digital asset coincides with reports that the Ethereum treasury company, Bitmine Immersions, wants to raise $20 billion, which will be used to increase its ETH holdings to account for 5% of the total circulating supply. These reports emerged just days after Bitmine boosted its ETH holdings to 1,150,263, bringing their cryptocurrency treasury value above $5 billion. As reported by Bitcoin.com News, the amount of ETH held by the Ethereum treasury has made it the third-largest cryptocurrency treasury holding company globally. Only the strategies of Michael Saylor and Marathon Digital Holdings have larger holdings. Capital Rotation Although Bitmine's plan is considered to impact the supply-demand structure of ETH, a Bitunix analyst warns that such a plan is a medium and long-term factor, unlikely to "immediately change the selling pressure in the historical supply zone." Furthermore, Bitunix warns that increased adoption by institutions often leads to increased liquidity flow, which will amplify profits during growth phases but also accelerate declines during pullbacks. Meanwhile, Koroush AK, the founder of Zero Complexity Trading, stated that when ETH starts to outperform BTC, it is a signal that capital is flowing into Ethereum. "This is your early warning that the next wave of money could impact large-cap altcoins. Looking at the ETH/BTC chart allows you to clearly map out the strength of ETH," AK wrote on X. The founder added that once ETH starts to show "clear strength" against BTC, it means that "large-cap altcoins like SOL, SUI, AVAX, and XRP are often the next candidates." However, AK warned that this capital rotation "can reverse quickly."