Ethereum News Today: Ether Breaks Out as Fed Signals Easing, Inflows Pour In

Ethereum’s native token, Ether (ETH), surged to a new all-time high of $4,867 on Coinbase on Friday, driven by a dovish signal from Federal Reserve Chair Jerome Powell during his speech at the Jackson Hole symposium. The price marked a significant rebound, rising over 250% from its April low of $1,385. Analysts attributed the rally to the Fed's indication that a 25 basis point interest rate cut in September is possible, which increased expectations for looser monetary policy and, consequently, greater demand for risk assets such as Ethereum. Powell emphasized the stability of the labor market and the potential for policy adjustments, reinforcing optimism among investors [1].

The surge in ETH has been further supported by inflows into Ethereum-based exchange-traded funds (ETFs). On August 21, U.S. ETH ETFs attracted $287.60 million in capital after a period of outflows. As of Friday, these funds collectively managed over $12.12 billion in assets [1]. Additionally, corporate treasury adoption of Ethereum has gained momentum, with firms like BitMine, SharpLink, and GameSquare acquiring approximately $1.6 billion worth of ETH in the past month. Total corporate Ethereum holdings have now surpassed $29.75 billion, indicating a growing perception of Ether as a utility-rich reserve asset rather than a speculative token [1].

Ethereum’s performance has also outpaced Bitcoin’s. Bitcoin’s market dominance dropped below 60% for the first time in four months, signaling a shift in investor attention toward altcoins. This capital reallocation has been fueled by the expectation that Ethereum will become a preferred blockchain for institutional and corporate use. Ether has gained nearly 45% year-to-date, while Bitcoin has risen approximately 25% over the same period. Some analysts, including those at Standard Chartered, have raised their price targets for ETH, with forecasts reaching as high as $7,500 for the end of 2025 and $25,000 by 2028 [1].

The macroeconomic backdrop has been instrumental in Ethereum’s success. Powell’s comments reignited optimism in financial markets, with Ether rising nearly 15% in 24 hours. Institutional adoption and regulatory developments, including a more favorable stance from regulators and the recent launch of large Ethereum digital asset treasuries, have further bolstered investor sentiment. Additionally, the growing interest from traditional finance firms has led to increased demand for Ethereum-based products. For instance, Ethereum-focused investment products attracted $2.86 billion in the week ending August 15, surpassing Bitcoin’s inflows of $552 million [2].

Ethereum’s broader ecosystem has also contributed to its momentum. The token has benefited from the success of its Layer-2 networks, such as Base, and its dominant position in decentralized finance (DeFi) liquidity. Brian Huang, co-founder of on-chain automation platform Glider, noted that the ecosystem’s growth and Ethereum’s status as a global settlement layer are key factors driving its value. With the launch of new financial products and regulatory shifts, such as Trump’s executive order allowing digital assets in retirement accounts, Ethereum appears well-positioned for sustained growth [3].

Source: [1] ETH Soars To New All-time High On Fed Rate Cut Signal (https://cointelegraph.com/news/eth-hits-new-highs-as-fed-turns-dovish-ether-etf-inflows-resume) [2] Ethereum (ETH) Surges to New All-Time High Amid Likely ... (https://www.coindesk.com/markets/2025/08/22/ethereum-surges-to-new-all-time-high-amid-likely-september-rate-cut) [3] Ethereum Hits All-Time High Price After Nearly 4 Years (https://finance.yahoo.com/news/ethereum-hits-time-high-price-213405633.html)