Ether Surges to 5-Year High on Fed Rate Cut Hopes and Institutional Interest

Ether has reached a 5-year high of $4,470, driven by a 5% increase in the past 24 hours. The rise is attributed to the Consumer Price Index report and hopes for a Federal Reserve rate cut. Additionally, Tom Lee's Bitmine Immersion Technologies plans to raise up to $20 billion in capital for further ETH purchases, boosting the token's price. Ether's outperformance against Bitcoin reflects growing institutional interest in its role as a backbone for DeFi, tokenization, and smart contract ecosystems.

Ethereum (ETH) has inched closer to its all-time high of $4,867, driven by a series of bullish indicators and significant market inflows. The cryptocurrency's price has surged by 10% in the past 24 hours, reaching $4,715, just below the previous peak [1].

The rally is supported by several factors. Over the past six days, $2.3 billion has flowed into spot Ethereum exchange-traded funds (ETFs), with a record $1 billion inflow on Aug. 11 alone [1]. This surge in demand indicates a growing interest in Ethereum from institutional investors.

Additionally, Ethereum's daily transaction count reached a near-record high of over 1.87 million on Aug. 12, with July 2025 recording approximately 50 million transactions, the highest in over a year [1]. This increase in network activity signals robust demand and utility for the blockchain.

Moreover, the Ethereum Foundation has sold roughly 2,795 ETH worth $12.7 million amid the cryptocurrency's price rise, further indicating strong market conditions [2]. This sale comes as the Ethereum Foundation has often sold significant ETH holdings during periods of strong price momentum.

The rise in Ethereum's price is also reflected in its outperformance against Bitcoin. The cryptocurrency's gains are attributed to growing institutional interest in its role as a backbone for decentralized finance (DeFi), tokenization, and smart contract ecosystems [3].

Analysts predict that Ethereum could rise to areas beyond $10,000, based on various technical setups. The next major hurdle for ETH is close to the all-time high of around $4,700, according to analysts [1].

In summary, Ethereum's recent performance reflects a strong bullish sentiment in the market, driven by significant inflows, increased network activity, and growing institutional interest.

References:
[1] https://cointelegraph.com/news/ethereum-marching-toward-all-time-highs-as-traders-predict-13k-eth-price
[2] https://www.theblock.co/post/366804/the-daily-ethereum-foundation-sells-eth-as-price-nears-all-time-high-solana-hits-200-as-broader-altcoin-market-heats-up-and-more
[3] https://cryptoslate.com/ethereum-nears-all-time-high-as-altcoin-leverage-reaches-record-47b-levels/