Ethereum (ETH) has just set a new all-time high (ATH) when it first exceeded $4,867 since November 2021.
Impressive growth of over 250% since April
Just on Friday, ETH rose about 14% after U.S. Federal Reserve Chairman Jerome Powell signaled a potential 0.25% rate cut in September. From the low of $1,385 in April, ETH's price has surged over 250%.
Speaking at the Jackson Hole conference, Mr. Powell emphasized: 'A stable labor market allows us to cautiously adjust policy. However, given the current tightening context, changing outlooks and risks may require us to be more flexible.'
This 'moderate' message is seen as a sign that liquidity will loosen, creating a favorable environment for risk assets such as Ethereum.
ETF capital and corporate reserves stimulate growth
The rise of ETH is also fueled by a strong recovery of ETF funds in the U.S., which alone on August 21 attracted a net $287.6 million, raising total assets under management to over $12.12 billion.
Meanwhile, businesses are also ramping up their ETH accumulation. In the past month, companies like BitMine, SharpLink, Bit Digital, BTCS, and GameSquare have purchased around $1.6 billion in ETH, bringing their total corporate holdings to over $29.75 billion (according to StrategicETHReserve.xyz).
According to Ray Youssef, CEO of the financial app NoOnes: 'Ethereum is no longer viewed merely as a speculative token, but is becoming a valuable reserve asset with high utility.'
Price outlook and the 'perfect storm'
Standard Chartered Bank has raised its year-end ETH price forecast to $7,500 (from $4,000), while setting a target of $25,000 by 2028. Some analysts are more optimistic, predicting ETH could reach $13,000 in the coming months.
According to the analysis platform Hyblock, current market demand far exceeds supply: 'At historical peak zones, there is usually selling pressure, but currently, demand from ETFs, corporate reserves, along with the strong development of DeFi and stablecoins, has created a 'perfect storm' for ETH.'
Bitcoin loses its advantage, altseason kicks off
The heat of ETH occurs simultaneously with the decline in Bitcoin's market share, as BTC's dominance rate drops below 60% for the first time in four months, down from a peak of 66% earlier this year.
This sign indicates that capital is shifting to altcoins, especially large-cap assets like Ethereum.
A report from CoinShares shows that in the week ending August 15, Ethereum investment products attracted a net $2.86 billion, many times higher than Bitcoin's $552 million.
Since the beginning of the month, the ETH fund has increased by an additional $2.96 billion, while BTC recorded an outflow of $21 million.