Ethereum Surges 6% to $2,608.70 on Weak U.S. Payroll Data

Ethereum, the second largest cryptocurrency by market capitalization, has surged past the $2,600 threshold in a recent bullish run. The token experienced a significant increase in trading volume following the release of U.S. payroll numbers, which came in weaker than expected. This data sparked optimism in traditional markets, with investors hoping that the Federal Reserve might cut interest rates sooner than anticipated. Lower interest rates could reduce the cost of capital and boost demand for riskier assets, including cryptocurrencies like Ethereum.

At around 9:45 UTC, Ethereum reached a peak of $2,608.70, marking a 6% increase from its previous price point. Other cryptocurrencies, such as XRP and SOL, followed Ethereum's lead, indicating a broader market rally. Despite a slight correction from its peak, Ethereum maintained its position near the $2,600 level, trading at $2,590 at press time. The token has seen a 5.54% increase in the past 24 hours, with its market capitalization now standing at $313 billion, reflecting a 5.56% boost.

Ethereum's trading volume has also experienced a significant increase, rising by 83.7% compared to the previous trading day. Its daily trading volume now sits at $25.4 billion, indicating a surge in market activity. This increase in trading volume suggests that investors are becoming more active in the Ethereum market, driven by the recent bullish sentiment.

The rally in Ethereum's price is fueled by a mix of macroeconomic signals, institutional activity, and strengthening on-chain metrics. The weaker-than-expected U.S. payroll numbers have reinforced hopes for an earlier interest rate cut by the Federal Reserve, which could further boost demand for riskier assets. Additionally, the recently held Ethereum Community Conference, where co-founder Vitalik Buterin discussed the future of crypto and addressed fake decentralization claims, may have contributed to the renewed investor appetite for Ethereum.

Despite the recent outflows of $1.82 million from Ethereum ETFs, the cumulative total net inflow remains strong at $4.25 billion. This indicates that institutional investors continue to show interest in Ethereum, further supporting the token's bullish run. As the market continues to react to macroeconomic signals and on-chain metrics, Ethereum's price is expected to remain volatile in the near term. However, the recent rally suggests that investors are optimistic about the token's long-term prospects, driven by its potential to benefit from lower interest rates and increased institutional activity.