ETH Eyes $5,000 as Buying Pressure Intensifies – Asia Market Update

27/8/2025 – Ethereum Eyes $5K as Institutional Flows Bolster Rally

Ethereum (ETH) is outpacing Bitcoin (BTC), supported by growing institutional flows, shifting market narratives, and increasing odds of a $5,000 test, though upcoming macroeconomic data may challenge the momentum.

On Polymarket, the probability of ETH reaching $5,000 this month rose to 26%, up from 16% just days earlier, reflecting optimism from institutional accumulation and changing BTC-to-ETH capital flows.

“Ethereum’s strength is driven by significant inflows, establishing a major liquidity floor led by institutions,” said March Zheng, General Partner at Bizantine Capital. He added that ETH’s rebound is supported by the low ETH/BTC ratio, expanding stablecoin adoption, and clearer regulatory frameworks.

Market rotation added momentum. XRP joined ETH in leading the majors, while capital moved toward emerging narratives like CRO following Trump Media’s “Cronos Treasury” initiative. Retail speculation also played a role—Hyperliquid’s July trading volume surpassed Robinhood, with its $HYPE token posting double-digit gains. “Liquidity reallocation across crypto markets is a bigger driver than day-to-day price movements,” Enflux, a market maker, noted.

Institutional conviction remains a key factor. “Markets respond to headlines, but fundamentals drive long-term value,” said Gracie Lin, CEO of OKX Singapore. “Ethereum’s real utility and institutional accumulation, such as BitMine’s recent ETH purchases, highlight its central role. Upcoming U.S. PCE data will test how this conviction holds up amid volatility.”

Over the past 30 days, ETH has gained roughly 20%, compared with Bitcoin’s 6% decline, while trading volumes indicate ETH commanding higher liquidity despite a smaller market cap.

Market Snapshot

BTC: $111,733 – Weak on-chain activity and $940M in liquidations suggest fading momentum.
ETH: $4,598 – Supported by institutional inflows, even as DeFi activity and TVL lag previous cycles.
Gold: $3,410 – Holding above $3,400 amid rate-cut expectations and central bank purchases.
Nikkei 225: Down 0.17%, reflecting mixed Asia-Pacific market activity.
S&P 500: Up 0.41% to 6,465.94, as investors weigh Fed changes and Nvidia earnings.