Hey! You’ve probably seen that Ethereum (ETH) is back in the spotlight—the price broke through $4500, reaching its highest level since December 2021. The gain was over 5% in just one day. But what’s driving this rally? Let’s break it down.
Key Reasons Behind the Rise
Institutional Demand
Companies like Bitmine Immersion Technologies are aggressively buying ETH. They already hold $5 billion worth of ETH and plan to raise another $20 billion for further purchases.
U.S. spot Ethereum ETFs saw a record $1 billion inflow in a single day (August 11)—even surpassing Bitcoin ETFs.
Major funds, such as Sharplink, have also increased their ETH holdings.
Macroeconomic Factors & Fed Rate Cuts
U.S. inflation has eased slightly but remains above the 2% target.
Investors expect the Fed to cut interest rates in September for the first time since 2020—which could boost risk assets.
Ethereum Ecosystem Growth
Network activity is increasing in DeFi, asset tokenization, and blockchain-based settlements.
Recent upgrades have made Ethereum cheaper and faster.
The U.S. passed the GENIUS Act, clarifying crypto regulations and encouraging institutional participation.
Over the past month, Ethereum has surged ~50% against Bitcoin (ETH/BTC ratio above 0.37). However, ETH is still down 15% year-over-year.
What’s Next?
The uptrend looks solid for now, but crypto markets are unpredictable. What do you think—will ETH hold above $4500, or is a correction coming?
