Ether Clears Its 2021 Peak — What It Means for ETH Now

Ethereum finally did it. After flirting with records all month, ETH pushed to a new all-time high near $4.9k late last week—has since pulled back a bit.

What’s Driving the Move

Two forces converged: (1) macro hopes for a Fed cut after Chair Powell’s Jackson Hole remarks, and (2) sustained demand via spot Ether ETFs. Ether spiked on Powell’s tone, then briefly slumped in a weekend “flash crash” as forced liquidations rippled through crypto—volatility remains a feature, not a bug. On the fund side, U.S. spot Ether ETFs amassed billions in 2025 inflows, including a big one-day snapback of ~$288M last week after several outflow days.

Ethereum’s price action—reaching its previous peak from November 2021 and then surpassing it—was driven by several converging forces: speculation around Fed rate cuts, inflows of $1.6 billion into Ether ETFs, and strong interest from public companies adding ETH to their balance sheets. This 40% YTD gain in Ethereum significantly outpaced Bitcoin’s 24% rise, with Ethereum’s market cap crossing $587 billion and securing its dominance in DeFi and NFT applications.

ETF Lens: ETHA vs. FETH

iShares Ethereum Trust (ETHA) — BlackRock’s 25 bps sponsor fee, deep liquidity, and tight spreads make it the category’s volume anchor. YTD NAV total return was +43.9% as of Aug. 22. Assets have swelled to roughly $16B this month.

Fidelity Ethereum Fund (FETH) — Fidelity’s spot product charges 0.25% and tracks ETH via the firm’s reference rate. YTD return shows ~+44.9% (as of 8/22). AUM sits around $3.5B, giving it meaningful scale but still well behind ETHA.

Outlook & Trends

Both ETFS benefit from Ethereum’s expanding institutional role. Regulatory improvements—like the GENIUS Act, signed in July 2025—have provided stablecoin clarity, fueling additional trust for Ether-linked products. Low gas fees (0.4 gwei) and recent protocol upgrades make Ethereum more attractive for DeFi and everyday transactions, directly benefiting ETF demand. Competition from rival blockchains—namely Solana—remains a watchpoint, but Ethereum’s developer ecosystem and first-mover advantage strengthen its ETF investability.

Bottom Line

ETH’s breakout above the 2021 high is a sentiment and technical win—and ETF rails are central to that story. For straightforward, large-scale exposure, ETHA is the liquidity leader; for investors already in Fidelity’s ecosystem, FETH provides a clean 25 bps route. Either way, size positions for crypto’s trademark volatility, monitor flows, and keep one eye on the Fed calendar.