Key takeaways:
Ethereum has surged over 250% since its lows in April.
The dovish tone from Fed Chair Jerome Powell is driving the ETH price surge.
Bitcoin’s market dominance has fallen below 60% for the first time since March.
Ether (ETH), Ethereum’s native token, hit a new record high on Friday, exceeding $4,867 on Coinbase, marking the first time it reached this level since November 2021.
Ether price has risen 250% since April
ETH increased by approximately 14% on Friday, coinciding with Fed Chair Jerome Powell’s hints at a potential 25 basis point interest rate cut in September. This brought ETH’s gains to over 250% from its April low of $1,385.
“The consistency of the unemployment rate and other labor market figures permits us to proceed thoughtfully as we evaluate changes to our policy approach,” Powell stated during his speech at the Jackson Hole symposium, adding:
“However, given that policy is currently in tight territory, the overall outlook and changing risk dynamics may necessitate adjustments to our policy stance.”
Powell’s dovish shift suggests looser liquidity on the horizon, which typically enhances demand for risk assets like Ethereum.
ETH DATs continue to accumulate, and Powell adopts a dovish stance
Ether markets are also experiencing renewed interest from US-based ETFs. On August 21, these funds drew in $287.60 million worth of investments, following a period of four days of outflows.
By Friday, Ether ETFs were managing over $12.12 billion in assets.
Ethereum has also gained considerable traction through increased adoption of ETH treasury by corporations.
In the past month, corporate Ethereum treasury firms have acquired about $1.6 billion worth of ETH, with BitMine, SharpLink, Bit Digital, BTCS, and GameSquare being the most active purchasers.
As of Friday, these investments had surged to over $29.75 billion, according to data from StrategicETHReserve.xyz.
Ether is increasingly perceived not merely as a speculative asset but as a utility-rich reserve, according to Ray Youssef, CEO of the finance app NoOnes.
Standard Chartered has increased its year-end ETH price target to $7,500 from $4,000, with a long-term outlook of $25,000 by 2028. Some analysts predict ETH could reach $13,000 in the upcoming months.
Hyblock analysts suggest that market demand for ETH is likely to continue outpacing supply. They remarked:
“Typically, when approaching these psychological all-time high levels, you witness selling from early adopters from 2012-2015. If this selling isn’t met with genuine demand, it creates tops. We’ve seen this pattern in prior price peaks, but currently, there is real demand ready to absorb that supply, despite its presence. ETH inflows, corporate treasury activities (BNMR, Sharplink, etc.), and the tailwinds from the Genius Acts affecting Ether, DeFi, and stablecoins have created an incredibly favorable situation right now.”
Bitcoin dominance decline signals the onset of “altseason”
The rise in ETH has occurred alongside a significant decline in Bitcoin’s market dominance.
As of Wednesday, Bitcoin’s share of the total cryptocurrency market capitalization dropped below 60% for the first time in four months. At its yearly peak, BTC controlled 66% of the crypto market.
This trend indicates a rotation of capital towards altcoins, especially large-cap options like Ether, as traders and institutions search for greater returns.
Ether fund flows also reflect optimism towards ETH in the market.
Ethereum-focused investment products gained $2.86 billion in the week ending August 15, surpassing Bitcoin’s $552 million inflows during the same timeframe, according to CoinShares’ weekly report.
Month-to-date, ETH fund holdings have surged by over $2.96 billion, whereas BTC products have seen $21 million in outflows.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
