Ethereum’s Price Swings Sharply While Bitcoin Inches Toward Record Levels

Ether Surges to $4,300 as Traders Bet on All-Time High Retest; Bitcoin Trails but Gains Momentum

Ether (ETH) led crypto markets higher on Monday, extending a strong weekly rally as favorable regulatory signals and ETF inflows drove investor optimism. ETH has gained over 21% in the past seven days, trading around $4,300, while Bitcoin (BTC) climbed 3% to near-record levels at $120,254.

The broader crypto market also moved higher, with Solana (SOL), XRP, Dogecoin (DOGE), and BNB all rising by nearly 1%, recovering losses from the weekend to start the week in positive territory.

Diverging Volatility: ETH Leads as Options Market Reacts

Ether’s recent strength has triggered a notable divergence in short-term implied volatility between major crypto assets.

“Bitcoin’s implied volatility remains near all-time lows, while ETH’s has risen sharply,” noted Augustine Fan, Head of Insights at SignalPlus, in a note to CoinDesk.
“The ETH options curve is inverted — long-dated vol is holding near 70%, while short-term contracts are pricing in higher risk. BTC, by contrast, remains pinned near $120K with compressed near-term vol.”

Just a month ago, markets were pricing only a 5% probability of ETH reaching $4.5K by August. That threshold now appears within reach, highlighting the rapid shift in sentiment.

Institutional Flows, Regulatory Clarity Fuel ETH Rally

ETH’s outperformance has been supported by sustained inflows into ETH-based ETFs and a wave of pro-crypto regulatory developments. Traders are increasingly positioning for a potential retest of ETH’s all-time high near $4,870, last seen in late 2021.

Meanwhile, Bitcoin is beginning to show signs of renewed strength as institutional interest returns. Analysts suggest that ETH’s rally could be paving the way for a broader push across major digital assets.

“Assuming no major shocks, we expect BTC and ETH to continue their upward momentum,” said Jeff Mei, COO at BTSE.
“Market participants should closely monitor this week’s CPI and PPI data, along with developments around the next Federal Reserve chair nomination, which could heavily influence rate-cut expectations.”

Macro Tailwinds Add Support

The crypto rally mirrors gains in traditional markets. The S&P 500 rebounded from a post-payrolls dip to approach record levels, while the Nasdaq set a new high on the back of strong corporate earnings. Investors appear increasingly willing to overlook tariff headlines and political noise in favor of economic resilience.

As digital assets continue to gain traction in both institutional portfolios and macro-driven strategies, ETH’s leadership may signal further bullish momentum heading into mid-August.