Ethereum News Today: Ethereum's Bull Run Driven by Institutional Bet and Fed Signals

Ethereum (ETH) has reached a new all-time high amid growing institutional adoption and a broader market rally triggered by dovish signals from central banks. On Friday, ETH surged to $4,880, surpassing its previous record of $4,878.26 set in November 2021. The price increase followed comments by Federal Reserve Chair Jerome Powell, who hinted at potential interest rate cuts in September, spurring renewed buying activity across the crypto market [3].

The upward trajectory of ETH has been bolstered by a combination of factors. Institutional demand for Ethereum has surged as corporations increasingly allocate digital assets to their treasuries. BitMine and SharpLink Gaming, two of the largest Ethereum treasury holders, have collectively amassed over $10 billion worth of ETH, according to data from StrategicETHReserve.xyz. Meanwhile, U.S. spot Ethereum ETFs have drawn substantial inflows, with ETH ETFs now controlling over 5% of the total ETH supply. These funds have accumulated 6.3 million ETH, valued at approximately $26.7 billion [2].

Analysts and market participants are closely watching ETH's movement above key resistance levels. On Friday, Ethereum briefly tested $4,872 after peaking at $4,880, marking a 15% gain for the day. Technical indicators suggest that ETH could continue its upward trend if it breaks above $4,850 and sustains momentum toward $5,050. This level, considered a critical psychological threshold, could further validate the bull case for Ethereum, particularly in a market environment where liquidity remains abundant [4].

The surge in ETH has also coincided with a shift in investor sentiment toward altcoins. Bitcoin’s market dominance, which had been above 60% for most of the year, has dipped below that level for the first time in four months. This shift indicates that capital is rotating into altcoins, with Ethereum leading the charge. Ethereum-focused investment products have attracted over $2.96 billion in month-to-date inflows, while Bitcoin ETFs have seen relatively modest inflows or even outflows in recent weeks [3].

Looking ahead, market participants are monitoring several key developments. The Pectra upgrade earlier in the year improved Ethereum's scalability and staking efficiency, contributing to a positive sentiment shift. Additionally, the Federal Reserve's potential rate cuts are expected to further boost risk-on assets, including crypto. While some short-term volatility remains a concern, particularly given recent ETF outflows, the overall narrative for Ethereum remains firmly bullish. Analysts from firms like Standard Chartered have raised their ETH price targets, with some projecting ETH could reach $13,000 in the coming months [3].

Source: [1] Why Arthur Hayes Expects Ethereum to Surge to $20,000 (https://finance.yahoo.com/news/why-arthur-hayes-expects-ethereum-210103605.html) [2] Ethereum hits fresh all-time high amid wider market rally (https://www.theblock.co/post/366657/shell-dnp-ethereum-hits-new-all-time-high-price-as-eth-crosses-4900-for-the-first-time-ever) [3] 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) [4] ETH News: Bulls Smash Resistance as Ethereum Eyes (https://thetradable.com/crypto/eth-news-bulls-smash-resistance-as-ethereum-eyes-historic-5k-milestone-cm--v) [5] Ethereum Surpasses $4800 Resistance, Eyes New All- (https://holder.io/news/ethereum-surpasses-4800-resistance-new-ath/) [6] Bitcoin and Ethereum Surge as Traders Eye Critical (https://cryptodnes.bg/en/bitcoin-and-ethereum-surge-as-traders-eye-critical-resistance-zones/) [7] US spot Ethereum ETFs now hold over 5% of ETH supply (https://www.theblock.co/post/367378/ethereum-etfs-eth-supply)