Ethereum has finally done it. After nearly four years of waiting, the world's second-largest cryptocurrency has broken the old record and set a new historical high.
$ETH broke past $4,888 on Friday, slightly exceeding the previous high of $4,878 from November 2021.
Since then, the price has slightly retreated, and as of this writing, the price is around $4,700.
What triggered this breakout?
The rally gained strong momentum after Federal Reserve Chairman Jerome Powell hinted at possible rate cuts, propelling risk assets to soar. Ethereum reacted swiftly, spiking nearly 8% within an hour, and continued to rise throughout the day.
Meanwhile, the Ethereum ETF has become a focal point. Just last week, the U.S. spot ETH fund saw over $1 billion in inflows in a single day, marking the best day since its launch in mid-2024. This helped ETH turn the tide against $BTC, surpassing the gains of the 'veteran' cryptocurrency in recent weeks.
On the institutional front, the outlook is also bullish. From Bit. Mine Immersion's $7 billion Ethereum holdings to Sharp. Link Gaming's $3.5 billion reserves, Ethereum is rapidly becoming the preferred reserve asset for investing in digital infrastructure companies.
Coupled with new regulatory clarity and Trump's executive order opening the door for digital assets in 401(k) plans, the conditions are perfect for Ethereum's breakout moment.
Market sentiment and ecosystem strength
Ethereum has truly arrived at its shining moment. The growth of layer two networks remains strong (Base is a leader among them), and Ethereum still holds an overwhelming advantage in DeFi liquidity, nearly 9 times more than its closest competitor, $SOL. In short, Ethereum remains the king of the global settlement layer in cryptocurrency.
A quick look at the chart 📊
From a technical perspective, Ethereum breaking past its 2021 high is a classic bullish continuation signal, even if the price slightly retreats to $4,750.
The key levels to watch now are $4,700 to $4,750. If this area can hold as support, it will validate the breakout and pave the way for the next round of upward movement.
If buyers continue to maintain control, the next upward target is between $5,200 and $5,300, with psychological resistance at $6,000. Momentum indicators like RSI are warming up but have not yet reached extreme levels, indicating that Ethereum may still have room to rise.
Ethereum Breaks Past Its 2021 High — Is This Just the Beginning?🚀 image 3
This Ethereum breakout feels different. With ETFs attracting record funds, institutions accumulating large amounts of $ETH, and the macro environment beginning to favor cryptocurrencies, Ethereum not only has the opportunity to return to its highs but may even redefine its role in global finance.
The biggest question now is: Can Ethereum maintain this momentum and move towards the $6,000 target or higher, or will it pull back to retest old resistance?
In any case, one thing is clear: $ETH has finally arrived at its shining moment. Strong recovery, asset doubling! Follow Awen closely, position in advance, and reap big profits easily.
Stay tuned: MYX BIO
