Ethereum News Today: Ethereum's All-Time High Driven by Powell's Words and Institutional Gold Rush

Ethereum hit a new all-time high of $4,885 on Friday, surpassing its previous peak of $4,866.01 set in November 2021, driven by dovish comments from Federal Reserve Chair Jerome Powell and rising institutional interest in the cryptocurrency [7]. The surge coincided with a broader rally in the crypto market, with Bitcoin also rising 4% to $117,008.29. Powell’s remarks during his annual speech in Jackson Hole suggested the possibility of a September rate cut, sparking a shift in investor sentiment toward risk-on assets and boosting demand for Ethereum [7].

The rise in Ethereum’s price has been supported by a combination of macroeconomic factors and growing institutional adoption. Ether ETFs have seen record inflows, with spot Ethereum ETFs accumulating $2.79 billion in net inflows in August 2025 alone [8]. Additionally, Ethereum treasury companies such as BitMine and SharpLink Gaming have amassed significant holdings, collectively controlling over 3% of the total supply of ETH, valued at approximately $19 billion [3]. These firms are raising additional capital for further purchases, reinforcing a bullish outlook for the cryptocurrency [8].

Arthur Hayes, founder of BitMEX, has reiterated his bullish stance on Ethereum, raising his price target to $20,000 by the end of the current bull cycle. Hayes attributed this expectation to the anticipated money-printing policies under the Trump administration, which could lead to major quantitative easing measures. He emphasized Ethereum’s potential to attract capital from digital asset treasuries and the broader market’s perception of ETH as an “unloved” asset that could see explosive growth [1].

The regulatory environment has also played a role in Ethereum’s recent performance. The approval of spot Ethereum ETFs in July 2024 and the introduction of the Genius Act in Washington have reduced uncertainty for institutional players [3]. These developments allowed traditional financial institutions to issue stablecoins on the Ethereum blockchain, with over $143 billion in Ethereum-based stablecoins in circulation as of Friday [3]. Moreover, the SEC’s “Project Crypto” initiative has clarified the regulatory status of many crypto assets, reinforcing confidence in the sector [3].

Despite the bullish momentum, historical patterns suggest caution. Data from CoinGlass indicates that in previous cycles, Ethereum’s August gains were often followed by September losses averaging 6.42% [6]. For instance, in 2017, Ethereum surged 92.86% in August but dropped 21.65% in September. However, market participants note that current conditions differ from past cycles due to the presence of Ether ETFs and increased institutional participation, which were absent in earlier years [6].

Ethereum’s rally has also spurred broader market activity, with trading volume and open interest spiking significantly. Daily Ethereum trading volume surged by 147% to $81.18 billion following Powell’s speech, while open interest increased by $3 billion [8]. The surge led to $388 million in ETH liquidations within 24 hours, the highest among all cryptocurrencies during the period [8]. Analysts attribute the heightened activity to the growing appeal of Ethereum as a macroeconomic play, particularly as stablecoins have become a central part of the crypto ecosystem.

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] Three reasons why Ethereum just broke a new all-time high (https://www.dlnews.com/articles/markets/three-reasons-why-ethereum-broke-a-new-all-time-high/)

[4] Ethereum vs. Bitcoin: The Flippening, Historical ... (https://www.mitrade.com/insights/news/live-news/article-3-1064277-20250824)

[5] Bitcoin and Ethereum Surge as Traders Eye Critical ... (https://cryptodnes.bg/en/bitcoin-and-ethereum-surge-as-traders-eye-critical-resistance-zones/)

[6] Ether's Upswing In August May Reverse In September: Data (https://cointelegraph.com/news/ether-price-rally-august-september-caution-history-shows-coinglass)

[7] Ether notches first new record since 2021 after Powell ... (https://www.cnbc.com/2025/08/22/crypto-market-today.html)

[8] Ethereum Price Hits New All-Time High Above 4880 Amid ... (https://coincentral.com/ethereum-price-hits-new-all-time-high-above-4880-amid-crypto-market-rally/)