Ethereum Climbs as Bitcoin Falls After Record Surge: Here’s Why

Author: Liz Napolitano
Edited by: James Rubin
Published: July 16, 2025

Introduction

Ethereum continued its recent momentum on Tuesday, gaining even as Bitcoin pulled back and fell to its lowest level in five days.

While BTC topped $120,000 earlier this week, setting multiple new all-time highs, the two largest cryptocurrencies by market cap reversed course on Tuesday. ETH rose, while BTC fell.

Market Data

Ethereum (ETH): Recently trading at $3,128, up 4% over the past 24 hours and 20% over the last week.

Bitcoin (BTC): Down 1.9% on the day, falling below $117,000 for the first time in five days (data from CoinGecko).

This ETH rally pushed it to its highest level in five months, confirming recent bullish momentum.

“After two years of underperformance, ETH is coming back,” said Greg Magadini, Director of Derivatives at Amberdata.

Recent Performance Comparison

Bitcoin has surged nearly 300% over the last two years.

Ethereum has climbed a more modest 60% in that time and remains down nearly 8% since the start of 2025.

Key Drivers of Ethereum’s Rally

1. Institutional Buying

Several publicly traded companies have added ETH to their balance sheets this week.

A wave of ETH-based investment products appears ready to hit the market.

Magadini also noted that Ethereum overcame Tuesday’s setback in crypto-friendly policy efforts in Washington.

2. Legislative Developments in the U.S.

On Tuesday, the U.S. House of Representatives failed to advance a measure that would have allowed votes on three major crypto bills.

Despite the political gridlock, ETH’s rally suggested the market sees broader structural demand for the asset.

“Today’s news hit BTC harder than ETH because of ETH-specific trading dynamics,” Magadini said.

3. Regulatory Optimism

Ethereum investors are increasingly hopeful that the U.S. Securities and Exchange Commission (SEC) will approve Ethereum exchange-traded funds (ETFs) that include staking.

In May, the SEC stated in a release it would not classify staking activities as securities transactions, boosting investor confidence in staking-based products.

High-Profile Treasury Purchases

Sharplink Gaming, an online gambling marketing firm, recently acquired $225 million in ETH for its balance sheet, bringing total holdings to around 280,000 ETH.

Earlier this week, Bitcoin miner BitMine also added more ETH, pushing the total value of its ETH holdings past $500 million.

Derivatives Market Surge

Magadini highlighted that open interest in Ethereum futures recently surpassed 12-month highs.

This level of notional open interest had last been seen when ETH traded near $4,000 in December 2024.

“It’s a major event in terms of market flows and participation,” Magadini said.

Conclusion

Ethereum’s rebound comes after two years of underperformance relative to Bitcoin.

Fueled by institutional buying, regulatory optimism, and strong derivatives interest, ETH is mounting a notable comeback—even as BTC pauses following its own record-setting rally.